• ITVI.USA
    12,516.750
    -9.230
    -0.1%
  • OTRI.USA
    16.650
    0.180
    1.1%
  • OTVI.USA
    12,493.660
    -24.370
    -0.2%
  • TLT.USA
    2.630
    -0.020
    -0.8%
  • TSTOPVRPM.ATLPHL
    2.500
    -0.130
    -4.9%
  • TSTOPVRPM.CHIATL
    2.020
    0.110
    5.8%
  • TSTOPVRPM.DALLAX
    1.290
    0.040
    3.2%
  • TSTOPVRPM.LAXDAL
    2.330
    -0.060
    -2.5%
  • TSTOPVRPM.PHLCHI
    1.400
    0.070
    5.3%
  • TSTOPVRPM.LAXSEA
    2.800
    0.050
    1.8%
  • WAIT.USA
    103.000
    -17.000
    -14.2%
  • ITVI.USA
    12,516.750
    -9.230
    -0.1%
  • OTRI.USA
    16.650
    0.180
    1.1%
  • OTVI.USA
    12,493.660
    -24.370
    -0.2%
  • TLT.USA
    2.630
    -0.020
    -0.8%
  • TSTOPVRPM.ATLPHL
    2.500
    -0.130
    -4.9%
  • TSTOPVRPM.CHIATL
    2.020
    0.110
    5.8%
  • TSTOPVRPM.DALLAX
    1.290
    0.040
    3.2%
  • TSTOPVRPM.LAXDAL
    2.330
    -0.060
    -2.5%
  • TSTOPVRPM.PHLCHI
    1.400
    0.070
    5.3%
  • TSTOPVRPM.LAXSEA
    2.800
    0.050
    1.8%
  • WAIT.USA
    103.000
    -17.000
    -14.2%
Air CargoCanadaCompany earningsNews

Air Canada cargo revenue plunges more than 18%

Airline’s Pacific and Atlantic routes hardest hit as trade wars continue to take a toll on air freight volumes and yield.

Air Canada’s (TSX:AC) cargo revenue fell by 18.4% during the third quarter on weakness from the Atlantic and Pacific markets. 

Canada’s largest carrier reported on Oct. 29 that it generated C$177 million (a Canadian dollar equals US$0.76) in cargo revenue compared to C$218 million in the third quarter of 2018. Cargo yield declined by 11.5%, while traffic dropped by 8%.

Air Canada’s cargo revenues in the third quarter of 2019.

The cargo declines happened as the airline’s overall profits plunged on the grounding of the Boeing 737 MAX. Air Canada’s adjusted net income dropped by 9.9% to C$636 million on a record C$5.5 billion of revenue. 

“Impressive as such strong results are on their own, they are even more meaningful given that we achieved them despite the serious disruption to our operations and to our cost structure created by the Boeing 737 MAX grounding,” Air Canada CEO Calin Rovinescu said in a statement.

The airline cargo business saw the biggest decline in Pacific revenue, falling by 32.6% to C$61 million. Atlantic revenue declined by 20.5% to C$60 million. 

Air Canada blamed the declines on “ongoing global trade disputes.” 

The airline had stronger cargo revenues in its Canadian and U.S. transborder business. Canadian revenue increased by 21.5% to C$31 million, while transporter rose by 9.9% to C$12 million.

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Nate Tabak, Border and North America Correspondent

Nate Tabak is a Toronto-based journalist who covers cross-border trucking, logistics and trade for FreightWaves. Before moving to Canada, he spent seven years reporting stories in the Balkans and Eastern Europe as a reporter, producer and editor based in Kosovo. He previously worked at newspapers in the San Francisco Bay Area, including the San Jose Mercury News. He graduated from UC Berkeley, where he studied the history of American policing. Contact Nate at ntabak@freightwaves.com.
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