Air Canada says it will return to pre-pandemic capacity levels in 2024, as the airline reported record fourth-quarter revenue in its continued recovery from the COVID-19 pandemic.
The Montreal-based airline said on Friday that it will boost 2023 capacity by 24 per cent compared to last year, bringing it to 90 per cent of pre-pandemic levels. The company expects to reach 100 per cent of pre-pandemic capacity levels by 2024.
«We’re very encouraged by several key indicators,» Air Canada’s chief commercial officer Lucie Guillemette said on a conference call with analysts on Friday following the release of fourth-quarter results. She says ticket sales in the fourth quarter of 2022 ending on Dec. 31 were 102 per cent above the same quarter in 2019, but on less capacity, indicating that pricing has increased in the wake of rising demand.
«Advanced booking trends remain solid, both from a volume and fare pay perspective, particularly in our international services, giving us the confidence to continue rebuilding our international network,» she said.
Air Canada is one of many airlines adding capacity to meet surging post-pandemic travel demand, even amid concerns about an economic slowdown. Chief executive Michael Rousseau noted on Friday’s conference call with analysts that airline travel levels are typically a multiplier of growth domestic product (GDP), meaning that when there is a recession, travel demand also declines. So far, he says the airline has not seen demand dip.
«We’re continuing to see strong demand through the booking curve,» Rousseau said, noting that leisure travel demand is making up for a slowdown in demand for business travel…
