Annual civil aviation statistics, 2018
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Released: 2020-07-02
The data in this release cover a period well before the onset of COVID-19 and will serve as an important benchmark to measure the full effect of the pandemic on the Canadian air transportation industry. More recent operational and financial data are available with the monthly and quarterly civil aviation statistics.
Net operating income for Canadian Level I to III air carriers decreased by one-fifth (-20.2%) to $1.9 billion in 2018, following an 18.1% increase in 2017.
Net operating income declines as operating expenses climb
In 2018, profits declined in the air transportation industry as net operating income decreased by $484.0 million, after a gain of $366.7 million in 2017. Although total operating revenue rose 8.5% from a year earlier to a record $27.7 billion in 2018, this was offset by an 11.4% increase in total operating expenses to $25.8 billion.
Passenger revenue accounted for 88.7% of total operating revenue in 2018, up from 87.9% in 2017. The growth in total operating revenue can be mainly tied to a 1.3% increase in yield (passenger revenue per passenger-kilometre) driven by growth in the Canadian economy and the air transportation industry. Revenue earned from passenger transportation grew across the country, with the largest gains in Ontario (+$624.1 million), followed by Manitoba (+$263.0 million) and Alberta (+$197.4 million).
The 11.4% growth in operating expenses in 2018 reflected a large gain in aircraft operations expenses (+16.5%), which was almost entirely attributable to higher turbo fuel costs (+28.4%). Canadian Level I to III air carriers consumed 8.5 billion litres of turbo fuel in 2018 and spent $6.9 billion to purchase the fuel. The increase in these costs was largely related to a jump in jet fuel prices (+24.4%), as reported in the Industrial Product Price Index from January to December. Fuel costs accounted for 26.6% of total operating expenses, up from 23.1% in 2017.
In 2018, 93.1 cents of each operating revenue dollar were used to cover operating expenses. Aircraft operations accounted for the largest portion of each dollar spent, at 46.1 cents, followed by all other operating expenses (33.6 cents), including general administration, and by maintenance (12.7 cents).
Chart 1
Turbo fuel consumption and expenses, Canadian air carriers
Total employment in the air transportation industry rose 7.8% to 65,655, with total wages and salaries increasing 7.3% (+$313.6 million) compared with 2017, to $4.6 billion. In 2018, wages and salaries accounted for 17.8% of the industry's total operating expenses, down slightly from 18.5% in 2017.
Total assets of Canadian Level I to III air carriers stood at $32.2 billion in 2018, up 8.3% compared with 2017.
The number of passengers continues to rise, but growth slows in the transborder sector
Canadian Level I to III air carriers reported 93.2 million passengers in 2018, an all-time high, up 5.6% from 2017 and continuing the upward trend that began in 2010.
Chart 2
Passengers carried, Canadian air carriers
The number of passengers on scheduled flights rose 5.9% to 89.8 million in 2018, while the number of passengers on chartered flights was relatively flat, up 0.3% to 3.4 million. The number of passengers in the domestic sector (within Canada) rose 4.8% to 48.4 million, and the number in the international sector grew 6.6% to 44.8 million passengers—both smaller increases than in 2017. Growth in the international sector reflected a 4.2% climb in transborder passengers (between Canada and the United States), down from 6.7% in 2017, as well as an 8.6% increase in other international passengers, up from 8.2% in 2017.
Canadian Level I to III air carriers recorded 227.5 billion passenger-kilometres flown in their scheduled and charter operations in 2018, up 8.1% from the previous year. Scheduled services accounted for 99.0% of the demand for travel, as measured by passenger-kilometres. On average, each passenger travelled 2 440 kilometres, up 2.3% compared with 2017. In 2018, the average trip length in the domestic sector was 1 226 kilometres, compared with 3 753 kilometres in the international sector.
Note to readers
This release covers Canadian Level I, II and III air carriers.
Level I air carriers include every Canadian air carrier that, in the calendar year before the year in which information is provided, transported at least 2 million revenue passengers or at least 400 000 tonnes of cargo.
Level II air carriers include every Canadian air carrier that, in the calendar year before the year in which information is provided, transported (a) at least 100,000 but fewer than 2 million revenue passengers, or (b) at least 50 000 but less than 400 000 tonnes of cargo.
Level III air carriers include every Canadian air carrier that (a) is not a Level I or II air carrier, and (b) in the calendar year before the year in which information is provided, realized gross revenues of at least $2 million for the provision of air services for which the air carrier held a licence.
Net non-operating income and loss are from commercial ventures that are not part of air transportation services, from other revenues and expenses attributable to financing or other activities that are not an integral part of air transportation, and from special recurrent items of a non-periodic nature. Non-operating income can be, for example, capital gains from the sale of aircraft, interest income and foreign exchange adjustment, while non-operating loss can include capital losses and interest on bank loans and other debt.
The average passenger trip length is obtained by dividing the number of passenger-kilometres by the number of passengers. Trips across Canada and across the globe are included in this calculation.
Data for 2012 to 2017 have been revised.
Because of rounding, components may not add up to the total.
Contact information
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