The movement of people by air has always brought enormous profits, not only to the countries to which people have flown for tourism purposes but also to the airlines themselves. This is why there are many air transport companies in the world. There is a lot of competition in this sector, and companies do their best to lure clients to their side and make every effort to improve the flight as much as possible. These companies include Air Canada, which has been on the market for decades.
This company delivers not only people but also cargo all over the world. By looking at the charts, you can look at the company’s profit growth over the past year. The figures for the fourth quarter of last year compared to the same period in 2020 gave a substantial profit of more than 30 percent, which is an excellent growth rate. (Canada, 2022). This is a massive jump in the company’s economic and strategic planning. This has been made possible by continuously improving flight quality and adapting to the post-industrial timeframe. Air Canada has provided numerous opportunities to visit other countries despite travel limitations and has contributed to the growth of the leisure travel industry.
Unfortunately, it took a full two years for the company to adapt to the pandemic. In 2020, the company suffered huge losses due to travel restrictions and a total lockdown. It is clear that the rest of the world was not prepared for the problem, and Air Canada did not lose the most money overall.
From a financial point of view, the most significant risk at the moment is that the world will not see the consequences. Fortunately, Air Canada has a history of dealing with the pandemic, and even in the event of a new lockdown, the airline already has the experience and financial security even with how difficult times have been recently (Canada, 2022). Nevertheless, there is also the risk of other equally dire problems. Unfortunately, the world is a fickle place, and it is impossible to calculate all the risks, but Air Canada is trying to think of its strategy for years to come.
Looking at their plan for the future, the company is concerned about what it will be like shortly. For example, in its plans, Air Canada prescribed development and improvement of comfort and transportation quality, improvement of communication abilities of its employees to better communicate with foreigners, and improvement of water filtration, which will undoubtedly affect the environment (Canada, 2022). The airline has decided to improve the price offered to its customers and reduce ticketing costs, which is also a big plus.
It is not easy to make any recommendations to a company that is already doing a great job developing and taking care of its customers. However, it is worth adding that the introduction of additional flights to other countries would extend its reach to other states. This would allow the company to count on more passengers and, as a consequence, help in the marketing and financial aspects. Also, looking at the urgency of current events in Eastern Europe, where the world is on the brink of war, humanitarian aid can be provided to countries in danger. This will raise the company’s image in the international market and expand the customer base. Overall, Air Canada has an ideal policy for the near future and today’s realities and is poised for massive growth shortly.
Reference
Canada, A. (2022). Air Canada Reports Fourth Quarter and Full Year 2021 Financial Results. Newswire.ca.