Air Canada, Canada’s largest airline, had a strong 2024, despite facing stiff competition and changing travel trends. The airline expanded its operations, improved profitability, and maintained dominance in key markets. However, high domestic fares and slow recovery in international routes created hurdles.
Air Canada operated a vast fleet, including Airbus and Boeing aircraft, serving millions of passengers. It added new aircraft to its inventory, reinforcing its position as a leading carrier. Despite this, its total seat capacity remained 13% below pre-pandemic levels, while global airlines surpassed their 2019 figures. International fares dropped due to rising competition, but domestic fares stayed high, frustrating Canadian travelers.
North America remained Air Canada’s strongest market, accounting for most of its seat capacity. The United States and Canada led its busiest routes, with Toronto Pearson International Airport handling most flights. Although Montreal played a key role in domestic travel, Toronto’s dominance was evident in both domestic and international routes.
Air Canada earned $22.3 billion in revenue for 2024, marking a 2% increase from the previous year. Its net income reached $1.3 billion, showcasing its financial recovery. While it outperformed American Airlines in post-pandemic profits, Delta Air Lines achieved significantly higher earnings. The airline’s ability to sustain profitability highlights its resilience, but it still lags behind its US competitors in revenue growth.
Looking ahead, Air Canada must address international capacity constraints and competitive pricing to strengthen its position. While the airline remains a dominant force in Canada, global challenges and shifting passenger preferences demand strategic adjustments. Its performance in 2024 reflected steady growth, but the path ahead requires innovation and adaptability.
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