Air Canada sees itself on a glide path to becoming a C$30 billion ($21 billion) annual revenue company by 2028.
The Montreal-based carrier released full-year 2024 guidance during its 17 December investor day that shows the company generating some C$22 billion in operating revenue during the 12 months ending 31 December.
The Star Alliance carrier plans to reach C$30 billion in annual revenue in four years and to exceed that figure by decade’s end.
”Our strategy, which builds on and leverages the unique strengths developed over the last decade, is to rise even higher with consistent margin expansion and structural cash generation while maintaining a strong balance sheet and a responsible risk profile,” says Michael Rousseau, Air Canada’s chief executive.
”Our plan includes expanding the network, improving the customer experience, taking care of our employees, enhancing financial performance and continuously investing in the business to generate long-term value for investors.”
Anticipated deliveries of new Airbus A220s and A321XLRs and Boeing 787-10s are expected to expand Air Canada’s capacity and drive some C$8 billion of revenue growth through 2028, with an increasingly modern fleet expected to lower fuel and maintenance costs between 15-20% in that timeframe.
Air Canada plans to invest about C$1 billion in fleet enhancements through 2028, including free wi-fi that will start rolling out in May, more cabin storage and “modern and comfortable seating”.
Looking into the immediate future, Air Canada expects 3-5% growth in passenger capacity as measured in available seat miles (ASMs) for the full year of 2025.
The middle point of that estimate would be a slight decrease from Air Canada’s 5% year-on-year ASM growth in 2024.
Air Canada also forecasts adjusted EBITDA of C$3.4-C$3.8 billion, compared with this year’s total of about C$3.5 billion.
In November, the carrier reported a third-quarter operating profit of C$1 billion, with results boosted by surging demand for international air travel.
