Flight tardiness and cancellations have particularly plagued Air Canada's large network of regional flights
MONTREAL — A"perfect storm" of problems lies behind Air Canada's wave of flight delays over the summer, its CEO said, even as the country's largest airline roars back to profitability — with no sign of slowing down.
Tardiness and cancellations have especially plagued Air Canada's large network of regional flights, run by Jazz Aviation. Rousseau pointed to a pilot shortage, which he boiled down to several factors: new carriers such as Flair Airlines and Lynx Air competing for labour; stricter regulations on shift length,"which causes all airlines in Canada to add 10 to 15 per cent more pilots to fly the same schedule," and dwindling enrolment at flight schools during the COVID-19 pandemic.
It reported net income of $838 million last quarter compared with a loss of $386 million a year earlier — and nearly a billion dollars in losses through all of 2022. Revenues grew more than a third to $5.43 billion, a record for the second quarter. Across major Canadian airlines, domestic ticket prices dropped 17 per cent from 2019 levels in June through August — to $323 on average for a one-way fare — especially on the busiest routes, according to travel data firm Hopper. But many regional flights as well as international ones outside the United States saw fares shoot up — by 18 per cent to $593 for Mexico and Central America, 30 per cent to $1,166 for Europe and 99 per cent to $2,065 for Asia.
The company ranked last among North America's 10 biggest airlines for on-time performance in July, according to a report by aviation data firm Cirium this week. Last quarter, Air Canada shelled out 24 per cent more year-over-year on worker compensation, due to 22 per cent growth in its full-time-equivalent employees, the company said. A 31 per cent plunge in jet fuel prices from a year earlier helped offset the cost.
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