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Cargo Newswire

Air Canada Cargo Delivers Strong Q2 Performance 

August 5, 2025
in Airlines
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10% revenue increase driven by higher volumes, stronger yields, and proactive shipping trends amid tariff changes

Air Canada Cargo reported a robust performance in the second quarter of 2025, with revenues rising 10% year-on-year to C$253 million, up from C$230 million in Q2 2024. The growth was underpinned by solid demand in the Pacific and Latin American markets, where both volume and yield showed notable improvements.

The airline’s cargo division also saw a 13% increase in revenue for the first half of 2025 compared to the same period last year, reinforcing its position as a key contributor to the Group’s diversified earnings.

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According to Air Canada’s quarterly management discussion and analysis, the improved performance was primarily driven by higher shipment volumes in the Pacific region and stronger year-on-year yields in both the Pacific and Latin America. Market dynamics were further shaped by frontloaded shipping activity as customers responded to tariff adjustments and revised U.S. duty-free exemption thresholds for low-value goods.

“The year-over-year performance also reflected increased shipping activity as shippers adjusted to changes in tariff deadlines and U.S. changes to the duty-free exemption rules,” the airline stated in its Q2 report.

While the Pacific and Latin American corridors recorded significant gains, cargo revenues in the Atlantic market remained flat for the quarter, in line with broader transatlantic freight trends.

Air Canada Cargo Q2 2025 Regional Highlights:

  • Total Cargo Revenue: C$253 million (↑10% YoY)
  • H1 2025 Cargo Revenue: ↑13% YoY
  • Pacific Region: Growth in volumes and yields
  • Latin America: Strengthened yields
  • Atlantic Region: Stable performance
  • Freighter Fleet: Six Boeing 767 freighters in service as of June 30, 2025

The airline continues to strategically invest in its freighter operations, expanding dedicated cargo capacity through its fleet of Boeing 767 freighters and capitalizing on growing regional trade flows, especially in emerging Latin American markets.

In its Q2 investor presentation, Air Canada outlined a continued focus on “disciplined and agile capacity management” and emphasized plans to expand its Latin America schedule to capture both passenger and cargo opportunities.

Cargo Gains Support Group-wide Stability

Air Canada’s cargo momentum complemented a steady second-quarter performance for the Group overall. Total operating revenues rose 2% year-over-year to $5.632 billion, with operating income at $418 million and adjusted EBITDA at $909 million, representing a margin of 16.1%.

President and CEO Michael Rousseau noted that strong operational performance, particularly in on-time metrics and customer satisfaction, aligned with the airline’s long-term strategy and helped bolster quarterly results.

“Operationally, we had an excellent spring, leading all major North American carriers in on-time performance for both May and June, which corresponded with strong gains in customer service scores,” Rousseau said. “We remained disciplined and consistent in executing on a long-term plan rooted in Air Canada’s proven commercial strategy, while navigating macroeconomic uncertainty and geopolitical tensions.

“Our results were further lifted by strong performances by Air Canada Cargo, Air Canada Vacations, and Aeroplan—each a key pillar of our diversified business model.”

The cargo division entered 2025 with significant momentum, having reported a 16% year-on-year increase in Q1 revenues, largely due to proactive shipping ahead of tariff deadlines—an early signal of the market sensitivity that continued into Q2.

As Air Canada advances its fleet modernization and capacity alignment efforts, cargo is expected to remain a strategic growth driver, particularly as global trade routes evolve and demand shifts toward integrated air logistics solutions.

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Devender Grover

Devender Grover

Devender was born in the year when the Beatles Group was formed. He holds two master’s degrees in English Literature and Public Administration. He also has an Honors degree in English Literature and a post-graduate diploma in Corporate Communications and Public Relations. He was closely associated with the Indian State Transport Undertakings and Ministry of Transport in his role as Corporate Communications and PR specialist for over two decades handling domestic and international organizations. He ventured into business forming his own Media House, Profiles Media Network Private Limited which is now a twenty years old company. Excelling as an editor, Marketing, PR, Anchor, and Advertising specialist, he is now expertly navigating the world of social media. A widely traveled professional internationally, Devender has a deep understanding of the Air Cargo, Cargo Business, Cargo Airports, Freighters and Cargo Industry at large.

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