Air Canada 2012 Annual Report Download - page 25

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2012 Management’s Discussion and Analysis
25
7. RESULTS OF OPERATIONS – FOURTH QUARTER 2012 VERSUS FOURTH QUARTER 2011
The following table and discussion compares results of Air Canada for the fourth quarter of 2012 versus the fourth quarter of
2011.
Fourth Quarter Change
(Canadian dollars in millions, except per share figures) 2012 2011 $ %
Operating revenues
Passenger $2,513 $ 2,374 $139 6
Cargo 126 125 1 1
Other 202 200 2 1
Total revenues 2,841 2,699 142 5
Operating expenses
Aircraft fuel 821 808 13 2
Wages, salaries, and benefits 529 501 28 6
Capacity purchase agreements 263 251 12 5
Airport and navigation fees 231 237 (6) (3)
Depreciation, amortization and impairment 157 174 (17) (10)
Aircraft maintenance 161 212 (51) (24)
Sales and distribution costs 133 140 (7) (5)
Aircraft rent 81 86 (5) (6)
Food, beverages and supplies 68 53 15 28
Communications and information technology 47 48 (1) (2)
Other 304 287 17 6
Total operating expenses 2,795 2,797 (2) –
Operating income (loss) 46 (98) 144
Non-operating income (expense)
Foreign exchange gain 9 114 (105)
Interest income 9 10 (1)
Interest expense (68) (76) 8
Interest capitalized 7 2 5
Net financing expense relating to employee benefits (3) (4) 1
Gain (loss) on financial instruments recorded at fair value 7 (5) 12
Other 1 (3) 4
Total non-operating income (expense) (38) 38 (76)
Income (loss) before income taxes 8 (60) 68
Income taxes – – –
Net income (loss) $8 $ (60) $68
Adjusted net loss(1) $ (6) $ (167) $161
EBITDAR(2) $ 284 $ 162 $122
Net income (loss) per share – basic and diluted $ 0.03 $ (0.22) $ 0.25
Adjusted net loss per share – diluted(1) $ (0.02) $ (0.60) $ 0.58
(1) 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.
(2) 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.