On March 16, Canadian flag carrier Air Canada issued its 2023 annual report, demonstrating its numerous achievements throughout the past calendar year. While one might expect the report to include traditional financial performance statistics, this document went far beyond that with a complete analysis of the carrier's progress toward achieving several strategic initiatives.

Throughout 2023, Air Canada safely carried over 45 million passengers, which helped the airline, alongside its regional, low-cost, cargo, and charter subsidiaries, record full-year operating incomes of $2.3 billion, which came alongside a record operating revenue of $21.8 billion. With these numbers in mind, it is safe to say that the carrier is performing well financially and continues to provide solid returns for investors.

The carrier has also continued to grow throughout the last year, with fourteen new routes launched, bringing the airline's total number of destinations served to 188. In this article, they will take a deeper look at Air Canada's 2023 annual report and where the airline stands a quarter of the way through 2024.

Impressive achievements

The airline's financial performance surpasses just performing well in a few specific categories. According to the report, which can be viewed on the Investor Relations page of the Air Canada website, the airline's adjusted EBITDA (a measure of earnings) more than doubled to $4 billion.

The carrier further generated an operating cash flow of $4.3 billion and maintained a free cash flow of nearly $2.8 billion while significantly lowering its leverage ratio, an important measure of the company's total debt.

Air Canada has made orders for five Boeing 737 MAX 8s and 18 Boeing 787-10s. Moreover, the workforce grew, with 8,000 new employees, totaling 39,000 people company-wide. The company, in total, spent $1.6 billion on capital investments, including new lounges, modernized aircraft, and updated technologies and control systems to prevent delays and potential Southwest-style meltdowns.

Something to celebrate

Air Canada's leadership team was undeniably excited by the release of the annual report, commemorating many important steps taken by the airline throughout 2023.

The executive was quick to tout the airline's modern fuel-efficient fleet for being a key catalyst for cost reduction and also indicated that an expanded network and increased product offerings have helped attract more customers. Rousseau was also excited to discuss the number of expanded environmental, social, and governance (ESG) programs.

Air Canada remains committed to supporting sustainability, equity, and accessibility throughout the communities it serves and provides thousands of entry-level employment opportunities. The airline is not just Canada's connection to the world but also a partner for thousands of employees and investors.