Canada’s largest airline is riding high.

Air Canada has reported record full year 2017 EBITDAR (earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent) of $2.921 billion for 2017. That’s an increase of $153 million over the full year 2016 figure of $2.768 billion; or about 5.2 per cent.

Adjusted pre-tax income was reported at $1.158 billion in 2017, up from $1.148 billion in 2016. On a GAAP (generally accepted accounting principles) basis, the airline reported record income before income taxes of $1.279 billion in 2017, up significantly from $877 million in 2016.

"Our strong 2017 results underscore the effectiveness of our transformation strategy, as well as the success of our global expansion and the power of our comprehensive network,” said Calin Rovinescu, President and Chief Executive Officer at Air Canada. “We profitably expanded our global network with 30 new routes launched, and carried a record 48 million customers, while maintaining our focus on cost discipline and continuing to improve margins.

“Our achievements were driven by the hard work and commitment of our 30,000 employees and I commend them for enthusiastically embracing positive change at Air Canada,” Rovinescu said. “I especially want to thank our colleagues from our various operations branches who worked through extremely challenging and disruptive winter conditions over the holiday period, for their commitment and professionalism in bringing our customers safely to their destinations.”

Air Canada has been aggressively expanding around the world and is seeking to turn Toronto Pearson into a stronger hub for east coast flights to Asia, Europe and South America. Officials also have said that Air Canada rouge has been a big help to their financial bottom line.

Rovinescu said the extent of Air Canada’s transformation is evident in its financial results.

“In 2017, we achieved our fifth consecutive year of record EBITDAR, passenger revenue climbed 10 per cent to a record $14.5 billion, and our unrestricted liquidity amounted to $4.2 billion at year-end. Our transformation has made Air Canada profitable while reducing risk in many areas, such as level of indebtedness and pension obligations, the twin pillars of long-term sustainability.

"We remain committed to meeting the key financial targets set during our September 2017 Investor Day. Beyond this, as we continue to capitalize on the momentum of our strategy and to further entrench cost discipline into our DNA, we have undertaken a new Cost Transformation Program intended to secure an additional $250 million in savings by the end of 2019," said Rovinescu.

"In 2018, our wide-body fleet renewal will be substantially completed as our mainline narrow-body replacement program accelerates. Along with new aircraft, we will keep investing in products and services, including our new loyalty program, technology to enrich the travel experience, and enhanced airport services and amenities. In 2017, we were recognized as ‘Best Airline in North America’ by Skytrax and we intend to continue providing a superior product to our customers, whom I thank on behalf of all Air Canada employees for choosing to fly with us," Rovinescu said.

In an interview with TravelPulse Canada earlier this year, Air Canada’s Duncan Bureau said the company’s 737 aircraft – they have two now, with firm orders for 61 and options for 109 – will allow Air Canada to better compete with new, low-cost carriers in Canada, including WestJet Swoop, due to launch in June.

“We certainly are going to be adding new routes in 2018,” said Bureau, Vice President Global Sales and Distribution. “I can’t say what they are but we’re very comfortable in our ability to add capacity in the trans-Atlantic, and certainly look at the trans-Pacific and add new routes successfully.”