Air Canada’s cargo operating revenues were up 16% year on year in the first quarter of 2025 as a result of shippers front-loading cargo to avoid increased costs from tariffs.
The airline reported cargo operating revenues of C$250m for the first quarter ending 31 March, up from up from C$215m in the first quarter of 2024.
The increased revenues were the result of higher Pacific and Latin America air cargo volumes and yields, said Air Canada.
”The revenue performance was driven by higher volume and yields in the Pacific and Latin American markets,” said the airline in its First Quarter 2025 Management’s Discussion document.
In the second half of the first quarter, Air Canada said it saw increased shipping activity.
”Cargo revenues grew year over year as shippers increased activity to get ahead of tariff deadlines and US changes to the duty-free exemption rules on low-value goods,” said the airline.
Michael Rousseau, president and chief executive of Air Canada, said Air Canada Cargo had "delivered solid results" in the quarter.
Fourth quarter 2024 cargo operating revenues totalled C$293m and were 20% up on the fourth quarter of 2023.
While revenues have increased year on year in the first quarter, the airline has been operating with a reduced freighter fleet, as previously reported by Air Cargo News.
Air Canada had six Boeing 767-300 freighters in service as of 31 March, down from eight as of 31 March 2024.
It has also been reducing its plans to further expand the freighter fleet.
The carrier had originally planned to operate a fleet of 12 freighters - 10 767s and two Boeing 777s - but in September 2023 announced the cancellation of an order for two newbuild 777Fs.
Then in May last year, Air Canada revealed it had also cancelled plans to convert two 767s into freighters.
