Air Canada anticipates a hastening recovery in cargo volume throughout 2024, building on the momentum that started in the fourth quarter. Mark Galardo, the executive vice president for network planning and revenue management, revealed that this improvement is expected to be bolstered by the inclusion of two additional freighter aircraft. However, despite the positive outlook for volume, the airline does not foresee an increase in pricing power.
In the upcoming year, Air Canada projects a 6% to 8% growth in cargo capacity, driven by the introduction of the two freighters and an expansion in passenger aircraft, which also carry cargo. The freighters in question are repurposed retired Air Canada passenger jets, undergoing retrofitting by aftermarket aerospace firms to accommodate large containers in the main cabin area.
Air Canada reported a 15% year-over-year decline in cargo revenue for the fourth quarter, totaling US$181 million. This dip was attributed to soft demand and reduced yields. However, it marked an improvement from previous months, signaling a gradual easing of the downturn that had impacted the air logistics industry for nearly 18 months. The full-year cargo revenue for 2023 recorded a 27% decrease, amounting to $253.7 million.
