Air Canada 2006 Annual Report Download - page 69

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Operating Expense excluding Fuel Expense and the Special Charge for Labour Restructuring
The Air Canada Services segment uses operating expense excluding fuel expense and the special charge for
labour restructuring to assess the operating performance of its ongoing business without the effects of fuel
expense and the special charge for labour restructuring. These items are excluded from Air Canada Services'
results as they could potentially distort the analysis of trends in business performance. Fuel expense has
increased significantly year-over-year and excluding this expense from GAAP results allows Air Canada
Services to compare its operating performance on a consistent basis. The special charge for labour
restructuring is not reflective of the underlying financial performance of the Air Canada Services segment from
ongoing operations.
The following measure is not a recognized measure for financial statement presentation under Canadian GAAP
and does not have a standardized meaning and is therefore not likely to be comparable to similar measures
presented by other public companies.
($ millions) Q4 2006 Q4 2005 Change 2006 2005 Change
Air Canada Services
GAAP operating expense 2,420 2,362 58 10,023 9,318
705
Remove:
Aircraft fuel (583) (577) (6) (2,544) (2,197) (347)
Operating expense, excluding fuel expense 1,837 1,785 52 7,479 7,121
358
Remove:
Special charge for labour restructuring 8 - 8 (20) - (20)
Operating expense, excluding fuel expense and the
special charge for labour restructuring 1,845 1,785 60 7,459 7,121
338
69
Management's Discussion and Analysis of Results and Financial Condition