Canadian Airlines See Revenue Surge in Q1 2024, Passenger Numbers Approach Pre-Pandemic Levels
Canada’s largest air carriers reported a significant increase in operating revenue for the first quarter of 2024, signaling a robust recovery in the aviation sector. The 24 largest Canadian airlines generated total operating revenue of $8.3 billion, an 8.1% increase compared to the same period in 2023 and 25.3% higher than pre-pandemic levels in 2019.
Passenger revenue remained the primary source of income, accounting for 87.2% of total revenue at $7.2 billion. Air cargo contributed $522.3 million, representing 6.3% of the total, in line with pre-pandemic trends.
The airlines transported 22.0 million passengers in Q1 2024, a 7.3% increase from the previous year, though still 5.4% below 2019 figures. Of these, 21.5 million traveled on scheduled flights and 436,000 on chartered services.
International travel showed strong recovery, with 13.1 million passengers on international routes, including 5.4 million on transborder flights between Canada and the United States. Domestic travel accounted for 8.8 million passengers.
Operating expenses also rose, reaching $8.3 billion, up 5.8% year-over-year and 28.8% higher than Q1 2019. The largest expense categories were other operating costs (51.5%), turbo fuel (25.1%), and wages, salaries, and benefits (23.3%).
Despite rising costs, airlines managed to improve efficiency. The load factor for scheduled flights reached 84.7%, surpassing the 82.3% recorded in Q1 2019. This indicates that airlines are successfully filling more seats on their flights.
These figures suggest that the Canadian airline industry is not only recovering from the pandemic-induced slump but is also showing signs of growth beyond pre-pandemic levels. However, challenges remain as the sector navigates rising operational costs and works to fully restore passenger numbers to historical highs.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
