Air Canada’s recent third quarter report has shown it is no longer lagging behind its US counterparts with its shift in focus on air cargo. This quarter, the Canadian airline posted $291 million USD of revenue from cargo operation.
The heavy emphasis placed on air cargo freight is a familiar tale for many airlines in the US and Canada, but with passenger travel opening up, many US based airlines have shifted back towards carrying passengers. On the other hand, Air Canada doubled down on using passenger freights to carry cargo by removing cabin seats and refurbishing older aircrafts. The strategic decision helped Air Canada cut operating losses by $289.5 million USD and generate net cash flow of $121.7 million USD.
The move to focus on air cargo freight can be partly attributed to the Canadian government’s stricter travel restrictions compared to the US policies. With ocean freight rates still breaking all-time highs, air freight’s uptick in popularity seems to continue unabated.
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