Air Canada (AC) has released its latest financial report for 2022, which showed its sales have picked up again.
The airline continues to struggle with the ongoing impact of COVID-19 on the travel industry, as well as recent news around lost baggage incidents and delayed refunds.
The report showed that the company posted a net loss of $1.7 billion for all of 2022. This brings its total losses to $6.3 billion since the start of the pandemic.
Efforts continue to support the airline’s recovery
Despite all of this, Air Canada has been making efforts to reduce costs and increase revenue. These efforts include retiring older aircraft, cutting thousands of jobs, and launching new routes to capitalize on the slow restart of travel. The airline has also been working to strengthen its balance sheet by securing additional funding and reducing its debt levels.
The company also released its adjusted EBITDA for its fourth fiscal quarter of 2022, which was $389 million. This represented an increase from the adjusted EBITDA of $22 million from the same quarter in 2021.
Air Canada’s CEO, Michael Rousseau, commented,
“This progress was also a result of the dedication and hard work of our employees who safely transported more than two million customers during a holiday period challenged by severe winter weather across North America, and to our entire team who successfully executed on our strategy.”
Caution still looms due to global conditions
However, investors remain cautious about Air Canada’s forecasts for recovery. The hesitation seems to be due to ongoing travel restrictions and border closures caused by various political and criminal activities. The airline’s shares have fluctuated in recent weeks, which may reflect the uncertainty surrounding the travel industry.
Additionally, Air Canada is facing increased competition from other airlines, such as WestJet and Flair Airlines. These carriers have been expanding their route networks and cutting prices in an effort to capture a larger share of the domestic and international travel markets.
Looking ahead, Air Canada will need to continue to adapt to a rapidly changing environment as it seeks to rebuild its business in the wake of the pandemic. With travel demand likely to remain unpredictable for some time, the airline will need to remain nimble and responsive to capitalize on emerging opportunities and navigate the ongoing challenges.
Air Canada (AC) is down 8.42 per cent, trading at $21.20 per share as of 4:27 p.m. EST.