Air Canada 2012 Annual Report Download - page 17

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2012 Management’s Discussion and Analysis
17
System passenger revenues increased 5.2% from 2011
In 2012, Air Canada recorded full year system passenger revenues of $10,737 million, an increase of $529 million or 5.2%
from 2011 full year system passenger revenues of $10,208 million, the result of a traffic increase of 2.6% and yield growth of
1.8%.
Air Canada’s operations were impacted by job actions in March and April of 2012 which, in the immediate aftermath, caused a
decline in bookings for travel originating in Canada. This decline in bookings affected second and third quarter 2012 passenger
demand, particularly within Air Canada’s North American network and for leisure travel packages offered by Air Canada
Vacations. Higher-yielding business market demand was also adversely affected. In addition, second quarter 2012 system
capacity and, as a result, passenger revenues were negatively affected by aircraft scheduling changes due to the closure by
Aveos of its maintenance facilities. Management estimated that the combined impact of the labour disruptions and the
reduction in capacity stemming from the Aveos closure adversely impacted passenger revenues by $100 million in 2012,
primarily in the second and third quarters.
Management estimated that the March 11, 2011 earthquake in Japan and its aftermath reduced passenger revenues by
$28 million in 2011.
Premium cabin revenues increased $87 million or 4.0% from 2011 due to traffic growth of 2.7% and a yield improvement of
1.3%.
The table below provides passenger revenue by geographic region for 2012 and 2011.
Passenger Revenue Full Year 2012
$ Million
Full Year 2011
$ Million $ Change % Change
Canada 4,178 4,015 163 4.1
U.S. transborder 2,130 2,064 66 3.2
Atlantic 2,114 2,033 81 4.0
Pacific 1,361 1,177 184 15.6
Other 954 919 35 3.8
System 10,737 10,208 529 5.2
The table below provides year-over-year percentage changes in passenger revenues and operating statistics for 2012 versus
2011.
Full Year 2012
Versus
Full Year 2011
Passenger
Revenue
% Change
Capacity
(ASMs)
% Change
Traffic
(RPMs)
% Change
Passenger
Load Factor
pp Change
Yield
% Change
RASM
% Change
Canada 4.1 1.0 2.7 1.4 1.2 3.0
U.S. transborder 3.2 2.8 3.1 0.2 (3.0) (2.7)
Atlantic 4.0 - 2.0 1.6 2.1 4.2
Pacific 15.6 1.7 3.2 1.2 11.9 13.5
Other 3.8 1.4 2.2 0.6 1.1 1.9
System 5.2 1.2 2.6 1.1 1.8 3.2
In 2012, Air Canada’s system capacity was 1.2% higher than in 2011, with capacity growth reflected in all markets with the
exception of the Atlantic market where capacity remained at 2011 levels.