Air Canada has reported its fourth quarter and full year 2021 financial results. Fourth quarter 2021 operating revenues of $2.731 billion, 30 per cent higher than in the third quarter of 2021, and over three times fourth quarter 2020 operating revenues. Record cargo revenues in 2021 of $1.495 billion compared to 2020 cargo revenues of $920 million.
“The unpredictable course of COVID-19 made 2021 extremely challenging for Air Canada and the global airline industry. But the sequential and year-over-year improvement in Air Canada's fourth quarter results shows the underlying recovery remains intact despite the Omicron variant. Our progress rebuilding our airline is due to the hard work, resourcefulness, and commitment of our people," said Michael Rousseau, President and Chief Executive Officer of Air Canada.
"Our quarterly EBITDA exceeded our expectations and turned positive for the first time in seven quarters, cash flow from operations remained positive and accelerated from the third quarter, and we ended the year with $10.4 billion in unrestricted liquidity, an increase of $2.3 billion, or about 29 per cent from the start of the year. We grew our capacity 26 per cent from the previous quarter, while continuing to successfully manage load factor and yields in the right direction. Prior to Omicron's onset, ticket sales reached 65 per cent of pre-pandemic levels in October and November. These are all encouraging indicators.
In 2021, Air Canada operated a total of 10,217 cargo-only flights, compared to 4,235 cargo-only flights in 2020.
In October 2021, Air Canada announced the start of a $16-million project to expand and enhance Air Canada Cargo's cold chain handling capabilities for shipments such as pharmaceuticals, fresh food, and other perishables at its Toronto Pearson International Airport cargo facility. The project is part of Air Canada's strategy to further develop its cargo division, which also includes the introduction of additional freighter aircraft, the launch of dedicated freighter routes and an expansion into the e-commerce delivery service.
In December 2021, Air Canada introduced its first Boeing 767 dedicated freighter to its operating fleet. Air Canada expects, by the end of 2022, to have three more Boeing 767 freighters in service.
“Air Canada Cargo has just concluded a year that saw it grow exponentially, solidifying our position as a market leader in growth over the last 24 months. During the quarter, we welcomed our first Boeing 767-300 freighter aircraft, a milestone that will allow us to continue to deliver consistent cargo capacity to our customers on key trade lanes. For the full year 2021, Air Canada Cargo reported revenue of $1.495 billion, an all-time high for the division. And we continue to invest in key areas for Air Canada Cargo, expanding our footprint in Frankfurt, completing the first phase of enhancements to our cold chain facilities in Toronto and the continued development of Rivo in the e-commerce space. I would like to thank our employees for their dedication and also thank our customers for choosing Air Canada Cargo and entrusting us to safely transport their valuable goods around the world,” said Jason Berry, Vice President, Cargo, at Air Canada.
