Air Canada Hits Revenue Record of $22.3 Billion in Eventful 2024

Aviation is never easy, but while Air Canada continues to battle rising costs and a high debt-to-equity ratio, the counterbalance of a strong demand environment, ongoing strategic initiatives and robust revenues reveal a strong bright side to 2024 Q4 and full-year results.

“2024 allowed us to demonstrate the wide-ranging strengths and adaptability of Air Canada. We adapted to market conditions and nimbly adjusted our network during the year,” said Michael Rousseau, President and CEO.  

“We were pleased to achieve a new contract with our pilots with limited disruption. We also enhanced the customer experience through improved operations, including an eight-point gain in on-time performance over 2023 and ongoing fleet, product, technology, and airport investments.”

Rousseau continued: “We are well positioned with a solid year behind us to leverage our competitive advantages, including our iconic brand, premium products, and global network, and to continue delivering on our plans. The demand environment remains favourable. We remain agile and responsive in our dynamic aviation industry and are prepared to adapt promptly to any changes or challenges that may arise.” 

Air Canada achieved record annual revenues of $22.3 billion on a 5% increase in capacity over 2023. It carried about 47 million passengers in 2024 and achieved nearly $3.6 billion in annual adjusted EBITDA and free cash flow of $1.3 billion. Significantly, AC bought back for cancellation over 20 million shares in 2024 and over 15 million more in early 2025, completing the normal course issuer bid program announced in November. 

For the fourth quarter, AC earned record operating revenues of $5.404 billion, a year-over-year increase of $229 million or 4% on capacity growth of 2%.

Operating expenses of $5.658 billion were up $562 million or 11%. The increase was largely due to a $490 million one-time charge in Q4 2024 for pension plan amendments linked to the new collective agreement with the Air Line Pilots Association (ALPA). Higher labour and maintenance costs also contributed to the increase.

For the full year 2024, operating revenues of $22.255 billion increased $422 million or 2% on an operated capacity growth of 5% year over year. Operating expenses of $20.992 billion were up $1.438 billion or 7%. The increase was largely due to higher costs in most line items due to capacity growth, higher labour, maintenance and IT expenses and the one-time $490 million charge recorded in the fourth quarter of 2024.