Air Canada's fundamentals remain strong, despite cost creep

Premium Analysis

Air Canada is fully leveraging its ability to capitalise on what it deems as still-strong international demand, and the company's push into long haul markets appears to be paying off, because international routes are bolstering the airline's revenues. The airline arguably has a unique strength as Canada's largest international airline - and that position is paying off.

The airline has also strengthened its balance sheet, reflected in its leverage ratios falling to pre-pandemic levels of 1.1x EBITDA, compared with a ratio of 5.1x as the end of 2022.

But the company is also facing cost headwinds in 2024 that could overshadow its prospects, and a return to normal cost trends is tough to predict.

Yet Air Canada's entrenched stature as Canada's largest airline, in an evolving environment in the country, remains a core strength that shows few signs of weakening.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,004 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.