In the first nine months of 2022, cargo revenue of Canadian dollars 978 million (Canadian dollars 714 million) was down 3 per cent.
FREMONT, CA:Due mostly to lower year-over-year traffic in the Pacific market, Air Canada Cargo reported a 23 per cent decline in revenue to Canadian dollars 281 million for the third quarter of 2022. According to a press statement, operations were impacted by reduced freighter activities due to temporarily converted passenger aircraft no longer operating cargo-only flights and, to a lesser extent, yield normalisation, primarily in the U.S. transborder and Atlantic markets. Increased capacity and increasing traffic in the Atlantic, U.S. transborder, and other markets helped to mitigate the decline to some extent.
Compared to the third quarter of 2019, the Q3 revenue of Canadian dollars 281 million increased by Canadian dollars 104 million, or 59 per cent. Revenues from cargo were Canadian dollars 978 million in the first nine months of 2022, down three per cent from the same period in 2021 but up Canadian dollars 447 million, or 84 per cent, from the first nine months of 2019. The decrease from 2021 was mostly caused by decreased traffic in the Pacific markets and lower yield in the U.S. transborder and Atlantic markets, which were only somewhat offset by higher yields in the Pacific markets and higher traffic, particularly in the Other and Atlantic markets.
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As of the conclusion of the second quarter of 2022, Air Canada will no longer be employing temporarily converted passenger aircraft for cargo-only flights, which influences these results. Four Boeing 767-300 freighters, including two just released from manufacturing, are now flown by Air Canada Cargo. By the end of 2022, the national airline of Canada will operate two more 767-300 freighters that have been converted. In Q3, group income more than doubled. More than twice as much as Q32021's operating revenue of 2.1 billion Canadian dollars, Air Canada reported operating revenue of 5.3 billion.
According to Michael Rousseau, President and Chief Executive Officer of Air Canada, Air Canada's solid third-quarter results stem from the ongoing restoration of an extensive network, improved operational performance, a modern and efficient fleet, as well as leading products and services, and an incredible team of employees. With a healthy operating margin of 12.1 per cent, we made Canadian dollars 644 million in operating income. Since the pandemic started, this was the first quarter in which we produced positive operating income.
Aeroplan performs incredibly well with travel returns, and Air Canada Cargo routinely contributes to results. Gross billings from points sold, purchase volume on co-brand cards and the number of new members in loyalty programmes have all reached record highs.
