Air Canada has reported that second-quarter operating revenues of CA$5.427 billion increased CA$1.446 billion from the same quarter in 2022, driven by a 42% year-over-year increase in passenger revenues. Operated capacity increased 21% from the second quarter of 2022, one percentage point lower than the projection provided in Air Canada's May 12, 2023, news release.
Operating expenses of CA$4.625 billion increased CA$391 million or 9% from the second quarter of 2022, driven by increases in nearly all line items reflecting higher operated capacity and traffic year –over year, partially offset by a 31.4% decrease in jet fuel prices.
Operating income of CA$802 million, with an operating margin of 14.8%, an improvement of over CA$1 billion from an operating loss of CA$-253 million in the second quarter of 2022.
Adjusted EBITDA of CA$1.220 billion, with an adjusted EBITDA margin of 22.5%, an increase of CA$1.066 billion and of 18.6 percentage points, respectively, from the second quarter of 2022.
Net income of CA$838 million improved CA$1.224 billion from the second quarter of 2022. Diluted earnings per share of CA$2.34 compared to a diluted loss per share of CA$1.60 in the second quarter of 2022.
Adjusted net income of CA$664 million improved CA$1.119 billion from the second quarter of 2022. Adjusted earnings per diluted share of CA$1.85 compared to an adjusted loss per diluted share of CA$1.12 in the second quarter of 2022, an improvement of CA$2.97 per diluted share.
Adjusted CASM (adjusted cost per available seat mile) of 13.3 cents increased 1.6% from the second quarter of 2022. The unit cost was impacted by higher passenger service costs due to higher traffic and higher selling costs, which are largely driven by revenues, and by a 24% increase in wages, salaries and benefits resulting from a 22% year-over-year increase in the number of average full-time-equivalent (FTE) employees. Second quarter 2023 CASM of 18.8 cents decreased 9.7% from the second quarter of 2022 mainly due to lower fuel prices and higher capacity year over year.
Net cash flows from operating activities of CA$1.490 billion increased CA$426 million from the second quarter of 2022.
Free cash flow of CA$965 million increased CA$537 million from the second quarter of 2022.
