Air Canada has announced that it is expecting higher capacity in the fourth quarter compared to the prior-year period. However, the airline has adjusted its forecast for the full year, citing higher costs.
Fourth Quarter Capacity Increase
Air Canada plans to increase its available seat miles (ASM) by approximately 10% in the fourth quarter. ASM is a measure of an airline’s operating capacity. This increase reflects the airline’s confidence in the travel industry’s recovery.
Revised Full Year Forecast
For 2023, Air Canada now expects its ASM capacity to be about 20% higher than it was in 2022. This is slightly lower than the previous forecast of a 21% increase. The revised forecast takes into account adjustments to expense items and considers the current cost environment.
Adjusted Operating Expenses
The airline anticipates that adjusted operating expenses per available seat mile will be about 1.5% to 2.25% higher than the levels seen in 2022. This metric measures the efficiency of the airline’s operations. The revised forecast reflects an increase compared to the previously expected range of 0.5% to 1.5%.
Air Canada has adjusted its guidance to align with the change in full year ASM capacity and the current cost environment. The airline will continue to monitor market conditions and make necessary adjustments to optimize its operations.
For more information, please contact Air Canada directly.