Air Canada 2007 Annual Report Download - page 44

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2007 Air Canada Annual Report
44
Seasonality
Air Canada has historically experienced greater demand for its services in the second and third quarters of the calendar year
and lower demand in the fi rst and fourth quarters of the calendar year. This demand pattern is principally a result of the high
number of leisure travelers and their preference for travel during the spring and summer months. The cost structure of the
Corporation is such that its fi xed costs do not fl uctuate proportionately with passenger demand in the short-term.
The table below summarizes quarterly fi nancial results and major operating statistics for Jazz for the last eight quarters. The
second quarter of 2007 shows the consolidation of Jazz only up to May 24, 2007. There was no consolidation of Jazz in the
third and fourth quarters of 2007.
($ millions)
Q1
2006
Q2
2006
Q3
2006
Q4
2006
Q1
2007
Q2
2007
Q3
2007
Q4
2007
Jazz
Operating revenues $ 320 $ 340 $ 369 $ 352 $ 364 $ 249 - -
Ownership (DAR) (1) (36 ) (40 ) (40 ) (39 ) (40 ) (26 ) - -
Other operating expenses (249 ) (263 ) (290 ) (280 ) (288 ) (197 ) - -
Operating expenses (285 ) (303 ) (330 ) (319 ) (328 ) (223 ) - -
Operating income 35 37 39 33 36 26 - -
Total non-operating income (expense),
non-controlling interest, foreign exchange
gain (loss) and income tax (2 )
- - (1 ) (1 ) 1
- -
Net income $ 33 $ 36 $ 39 $ 32 $ 35 $ 27 - -
(1) DAR refers to the combination of Aircraft rent and Depreciation, amortization and obsolescence expenses.
The table below summarizes quarterly consolidated fi nancial results and major operating statistics for the Corporation and
Jazz for the last eight quarters. The second quarter of 2007 shows the consolidation of Jazz only up to May 24, 2007. There
was no consolidation of Jazz in the third and fourth quarters of 2007.
($ millions, except per share fi gures)
Q1
2006
Q2
2006
Q3
2006
Q4
2006
Q1
2007
Q2
2007
Q3
2007
Q4
2007
Consolidated Total
Operating revenues $ 2,376 $ 2,559 $ 2,837 $ 2,395 $ 2,510 $ 2,622 $ 2,954 $ 2,513
Special charge for Aeroplan miles (1) - - (102 ) - - - - -
Operating revenues 2,376 2,559 2,735 2,395 2,510 2,622 2,954 2,513
Ownership (DAR) (2) (239 ) (239 ) (237 ) (247 ) (237 ) (231 ) (210 ) (202 )
Other operating expenses (2,225 ) (2,171 ) (2,329 ) (2,119 ) (2,315 ) (2,277 ) (2,393 ) (2,239 )
Operating expenses (3) (2,464 ) (2,410 ) (2,566 ) (2,366 ) (2,552 ) (2,508 ) (2,603 ) (2,441 )
Operating income (loss) (88 ) 149 169 29 (42 ) 114 351 72
Total non-operating income (expense),
non-controlling interest, foreign exchange
gain (loss) and income tax (38 ) 3 (125 ) (173 ) 8 41 (78 ) (37 )
Net income (loss) $ (126 ) $ 152 $ 44 $ (144 ) $ (34 ) $ 155 $ 273 $ 35
Earning (loss) per share
- Basic and diluted (4) $ (1.43 ) $ 1.72 $ 0.50 $ (1.55 ) $ (0.34 ) $ 1.55 $ 2.73 $ 0.35
(1) The third quarter of 2006 includes a special charge of $102 million in connection with Air Canada’s obligation for the redemption of pre-2002 Aeroplan miles.
(2) DAR refers to the combination of Aircraft rent and Depreciation, amortization and obsolescence expenses.
(3) The fi rst quarter of 2006 includes a special charge for labour restructuring of $28 million. The fourth quarter of 2006 includes a favourable adjustment
of $8 million relating to the special charge for labour restructuring recorded in the fi rst quarter of 2006.
(4) Earnings per share – basic and diluted are the consolidated Air Canada fi gures as reported under GAAP.