Air Canada Cargo Sees a 25% Drop in Revenue during Q2

Air Canada’s cargo business saw second-quarter operating revenues drop 24% year over year.

Operating revenues for Air Canada Cargo in the three months ended June 30 were C$227m, down from C$299 in the same period in 2022.

Michael Rousseau, president and chief executive of Air Canada, said in a press release: “Our cargo business, like others in the industry, experienced lower demand and yields than expected.”

Overall, the Montreal-headquartered airline reported operating revenues of C$5.427bn, an increase of 36% from the second quarter of 2022.

The carrier noted it had six Boeing 767 freighters at the end of the second quarter, compared with four of this freighter type a year earlier.

“Air Canada also incurs expenses that are related to the operation of freighter aircraft, which some airlines, without comparable cargo businesses, may not incur,” said the carrier in its press release. ”

Air Canada Cargo took delivery of two newbuild Boeing 767-300 freighters in May.

The airline registered a 15% decline in full-year cargo revenues to C$1.3bn in 2022, due to the ending of its pax-freighter operations and lower yields.