Air Canada cargo revenues drop 27% in 2023
16 / 02 / 2024
Boeing 767F. Photo: Air Canada
Air Canada’s full year 2023 cargo revenues declined 27% year on year due to reduced air cargo demand and a loss of capacity in the form of temporary passenger freighters (preighters).
The airline said the decline of C$342m was partially offset by increased operations of purpose-built freighters in its cargo business, Air Canada Cargo.
“The decline was due to softness in volume and yield in all markets and to the return of temporarily converted passenger aircraft to passenger operations through the end of the
second quarter of 2022,” said Air Canada.
During the pandemic, Air Canada operated more than 13,000 all-cargo flights globally using its widebody passenger aircraft. It introduced temporarily modified Boeing 777 and Airbus A330 aircraft – with seats removed from the passenger cabin.
“Increased freighter operations to Central and South America and to Europe partially offset the year-over-year decline,” added the airline.
At the end of 2023, Air Canada operated seven Boeing 767 freighters compared to the three 767Fs it operated in 2022. The airline expects to have 12 freighters by the end of 2024.
Air Canada cargo revenues 2023. Source: Air Canada
For the fourth quarter of last year, Air Canada reported operating revenues of CS244m, down 15% (CS44m) on the fourth quarter of 2022.
“The decline was primarily due to lower yields in all markets on softness in demand for air cargo services, said Air Canada.
Air Canada Q4 2023 cargo revenues by region. Source: Air Canada
In addition to freighter aircraft investments, Air Canada Cargo invested in its freighter network last year.
Air Canada Cargo continued freighter deployments in 2023 to over a dozen destinations, including Toronto, Halifax, St. John’s, Miami, Atlanta, Dallas, Quito, Lima, San Juan, Mexico City, Guadalajara, Bogotá, Madrid, Frankfurt, Basel and Liege.
Air Canada also enhanced its interline co-operation with Emirates SkyCargo, which allows customers to book interline cargo shipments through the Emirates SkyCargo flights, including between the Americas and Southeast Asia and India, through key European hubs.
