Air Canada has reported its fourth quarter and full year 2022 financial results. With positive cash flow from Q4 operations and revenues topping 2019 pre-pandemic levels, the airline is enjoying a strong rebound.

"We are pleased with our fourth quarter and full year 2022 financial results. We reported record fourth quarter passenger and operating revenues, surpassing our results from a year ago and those of the fourth quarter of 2019,” said Michael Rousseau, President and CEO.

“This was due to solid demand and yield environments across our network. 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,” Rousseau added.

The Air Canada leader said the performance "is attributable to the deep resilience we have built into our company” for long-term stability.

“We reported positive cash flows from operations in the fourth quarter of $647 million and positive free cash flow of $320 million. We exercised diligent cost control. Our adjusted EBITDA of $389 million was $367 million better than a year ago. For the full year, we reported adjusted EBITDA of $1.457 billion and an adjusted EBITDA margin of 8.8%, meeting our full-year 2022 guidance. We ended the year with total liquidity of more than $9.8 billion,” Rousseau stated.

From its core passenger business to Aeroplan, Air Canada Cargo and Air Canada Vacations, AC showed strength in all areas. Passenger revenue overall was 2% higher than Q4 2019. Revenue from premium cabins was about 13% higher, supported in part by Aeroplan, which is seeing active membership at an all-time high. Air Canada Cargo revenue was up 55% compared to the same quarter pre-pandemic and ACV package revenues were 23% higher than Q4 2019.

"We are very encouraged with the positive outlook ahead,” said Rousseau. “Our quarterly ticket sales were 102% of the fourth quarter of 2019, on a lower level of capacity, and we expect a solid demand environment in 2023. In anticipation, we are building out our global network, continuing our narrow-body fleet renewal, and investing in technology and customer service.”

Operating capacity in the fourth quarter represented about 85% of Q4 2019. AC posted an operating loss of $28 million for the quarter, a massive improvement from an operating loss of $503 million in the fourth quarter of 2021.

For the full-year 2022, capacity represented about 73% of 2019 levels. A full-year operating loss of $187 million compares with $3.049 billion in 2021.