Canada’s largest airlines reported a significant increase in operating revenue for the first quarter of 2024, indicating a robust recovery in the aviation sector. Canada’s 24 largest airlines generated total operating revenue of $8.3 billion, an 8.1% increase over the same period in 2023 and 25.3% higher than pre-pandemic levels in 2019.
The main source of revenue remained passenger revenue, accounting for 87.2% of total revenue, or $7.2 billion. Air cargo contributed $522.3 million, or 6.3% of total revenue, in line with pre-pandemic trends.
Airlines carried 22.0 million passengers in the first quarter of 2024, up 7.3 percent year-on-year, but still 5.4 percent less than in 2019. Of these, 21.5 million traveled on scheduled flights and 436,000 on charter flights.
International travel recovered strongly. 13.1 million passengers travelled on international routes, including 5.4 million on cross-border flights between Canada and the USA. Domestic travel accounted for 8.8 million passengers.
Operating expenses also increased, reaching $8.3 billion, an increase of 5.8% year-over-year and 28.8% from the first quarter of 2019. The largest expense categories were other operating expenses (51.5%), turbo fuel (25.1%), and wages, salaries and benefits (23.3%).
Despite rising costs, airlines managed to increase their efficiency, with scheduled flight load factors reaching 84.7%, surpassing the 82.3% recorded in the first quarter of 2019. This indicates that airlines are managing to fill more seats on their flights.
These numbers suggest that Canada’s aviation industry is not only recovering from the pandemic-related slump, but is also showing signs of growth beyond pre-pandemic levels. However, challenges remain as the sector copes with rising operating costs and works to return passenger numbers to historical highs.
Information for this briefing was found through Statistics Canada. The author owns no securities or affiliations with this organization. No recommendation to buy or sell. Always conduct additional research and consult a professional before purchasing a security. The author holds no licenses.
As founder of The deep diveJay focuses on all aspects of the company, including operations as well as serving as the lead writer for The Deep Dive’s equity analysis. In addition to The Deep Dive, Jay writes freelance for a number of companies and has been published on Stockhouse.com And CannaInvestor Magazine among other things.
