Air Canada 2012 Annual Report Download - page 16

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2012 Air Canada Annual Report
16
6. RESULTS OF OPERATIONS – FULL YEAR 2012 VERSUS FULL YEAR 2011
The following table and discussion compares results of Air Canada for the full year of 2012 versus the full year of 2011.
Full Year Change
(Canadian dollars in millions, except per share figures) 2012 2011 $ %
Operating revenues
Passenger $10,737 $10,208 $529 5
Cargo 488 481 7 1
Other 895 923 (28) (3)
Total revenues 12,120 11,612 508 4
Operating expenses
Aircraft fuel 3,561 3,375 186 6
Wages, salaries, and benefits 2,109 1,991 118 6
Benefit plan amendments(1) (124) - (124)
Capacity purchase agreements 1,072 1,003 69 7
Airport and navigation fees 992 1,007 (15) (1)
Depreciation, amortization and impairment 678 728 (50) (7)
Aircraft maintenance 672 681 (9) (1)
Sales and distribution costs 603 612 (9) (1)
Aircraft rent 336 335 1 -
Food, beverages and supplies 291 278 13 5
Communications and information technology 188 193 (5) (3)
Other 1,305 1,230 75 6
Total operating expenses 11,683 11,433 250 2
Operating income 437 179 258
Non-operating income (expense)
Foreign exchange gain (loss) 106 (54) 160
Interest income 37 36 1
Interest expense (304) (320) 16
Interest capitalized 18 4 14
Net financing expense relating to employee benefits (16) (16) -
Loss on financial instruments recorded at fair value (20) (63) 43
Loss on investments in Aveos (65) - (65)
Other (6) (16) 10
Total non-operating expense (250) (429) 179
Income (loss) before income taxes and discontinued operations 187 (250) 437
Income taxes (1) 1 (2)
Net income (loss) from continuing operations $186 $(249) $ 435
Net loss from discontinued operations – Aveos $(55) $- $ (55)
Net income (loss) $131 $(249) $ 380
Adjusted net income (loss)(2) $ 53 $(122) $ 175
EBITDAR, excluding the impact of benefit plan amendments(1) (3) $ 1,327 $1,242 $ 85
EBITDAR(3) $ 1,451 $1,242 $ 209
Basic earnings (loss) per share from continuing operations $0.66 $(0.92) $ 1.58
Diluted earnings (loss) per share from continuing operations $0.65 $(0.92) $ 1.57
Basic and diluted loss per share from discontinued operations $(0.20) $– $ (0.20)
Net income (loss) per share – diluted $0.45 $(0.92) $ 1.37
Adjusted net income (loss) per share – diluted(2) $ 0.19 $(0.44) $ 0.63
(1) In the third quarter of 2012, Air Canada recorded an operating expense reduction of $124 million related to changes to the terms of the ACPA collective agreement.
(2) Adjusted net income (loss) and adjusted net income (loss) per share – Diluted are non-GAAP financial measures. Refer to section 20 “Non-GAAP Financial Measures” of this
MD&A for additional information.
(3) EBITDAR, excluding the impact of benefit plan amendments, and EBITDAR are non-GAAP financial measures. Refer to section 20 "Non-GAAP Financial Measures" of this
MD&A for additional information.