Higher profit in 2024Air Canada (AC.TO) and WestJet Airlines are set to book higher profit in 2024, according to Moody’s Investors Service. Analysts predict robust demand from travellers, despite a potentially slower global economy Air Canada reported soaring profit in its latest quarter. Canada's largest carrier also saw a higher year-over-year passenger count during the recent holiday travel season We believe operating profit increased for Air Canada and WestJet in 2023, and will also do so in 2024, exceeding pre-pandemic levels this year,” Moody’s analysts Aziz Al Sammarai and Paresh Chari wrote in research published earlier this week. “These two airlines will outperform their Canadian peers, and different factors will drive their profitability growth.”
They say passenger demand will continue to support profit growth in 2024, “even as economic growth slows globally.”
Moody’s sees Air Canada benefiting from strong demand for international travel, and the higher fares those passengers are willing to pay. Sammarai and Chari estimate the airline generates nearly three-quarters of its revenue from these routes.
In October, Air Canada's executive vice-president of network planning and revenue management called for strong demand “in almost every single geography that we operate in, [and] in almost every single segment that we operate in.”