Air Canada saw 18% year on year cargo revenue growth in the third quarter of 2024, primarily due to thriving belly cargo in the Pacific market.
Revenues reached C$253m during the quarter ended September 30, up from C$215m during the third quarter of 2023, said the Montreal-headquartered airline.
In its third quarter management’s discussion and analysis document, Air Canada said: “In the third quarter of 2024, Cargo revenues increased 18% from the third quarter of 2023.
“This was primarily due to higher yields and volumes of chargeable kilos of cargo in passenger aircraft in the Pacific market.
“To a lesser extent, higher freighter revenues in the Americas also contributed to the increase. This was partially offset by lower belly cargo revenues and freighter revenues in the Atlantic.”
During the third quarter 2024 earnings call transcript, Mark Galardo, executive vice president, revenue & network planning and president, Cargo, commented that the airline had “surpassed expectations on our 767 freighter operation”.
He added: “Our right-sized network and freighter to belly commercial model are producing solid financial results that we believe are sustainable in the long run. We’re confident that cargo will continue performing.”
Galardo noted, in answer to a question about how air cargo demand is performing from an investor, that the airline expects demand to continue in the fourth quarter and early into 2025, with Asia Pacific and India strong business hotspots.
“The overall cargo environment is quite favorable. I would say it’s quite favorable in Asia Pacific. We see similar trends in India. And those really kind of stand out in terms of weakness or any areas of concern, none at this time. And we think this cargo tailwind continues into Q4 and the early part of next year.”
Air Canada confirmed it had six Boeing 767 freighters in service as of September 30. The carrier has scaled back its freighter fleet plans considerably.
The airline had originally planned to operate a fleet of 12 freighters – 10 767Fs and two Boeing 777Fs – but in September last year announced the cancellation of an order for two newbuild 777Fs. Then in May this year, Air Canada revealed it had also cancelled plans to convert two 767s into freighters.
One major development highlighted by Michael Rousseau, president and chief executive, was that Air Canada had now reached a new four-year collective agreement with pilots represented by the ALPA union, following a pay dispute that almost resulted in strike action.
Throughout the overall business, Air Canada recorded operating revenues of C$6.1bn in the third quarter, down 4% year on year. Passenger revenues were C$5.6bn, a decline of 4% from the same quarter last year.
Air Canada Q3 2024 cargo revenues
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