Air Canada looks ahead to increased growth, revenue

Air Canada is looking to grow even stronger during the next three years, after exceeding targets originally set in 2013 for cost reduction, return on invested capital, profit margin and debt ratio.

According to a report by The Globe and Mail, among the goals the carrier is eyeing for 2018 are a 21 per cent drop in costs per available seat mile by the end of 2018 from 2012 levels, due to new aircraft, the success of its rouge network and a restructured agreement with its regional service carrier Jazz. The result, the Globe reported, should bring earnings to between 15 and 18 per cent of the airline's operating revenue by 2018, with growth due to an increase in service between Canada and Asia, Europe, South America and the Middle East.

Air Canada has also predicted that 62 per cent of its business will come from international flights by 2018, a projection that follows the airline's launch of new services to Osaka, Venice, Austin and Atlantic City this past May, as well as an expansion of their regional network in Western Canada. The airline also re-introduced seasonal Toronto-Tokyo Narita flights to complement the new Toronto-Tokyo Haneda year-round service.

The Globe reports that the arrival of 25 Boeing 787 wide-bodied aircraft, providing service to Delhi and Dubai later this year, should allow for some of Air Canada's international routes to become profitable.

In addition to exceeding its goals for 2015, Air Canada reported a system load factor of 82.3 per cent for the month of May, versus 83.3 per cent in 2014, on a system-wide capacity increase of 9.8 per cent.

On this additional capacity, system wide traffic for May increased 8.5 per cent.

For more information, visit www.aircanada.com.