Air Canada 2012 Annual Report Download - page 27

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2012 Management’s Discussion and Analysis
27
In the fourth quarter of 2012, Air Canada’s system capacity was 1.3% higher than in the fourth quarter of 2011. Capacity
growth was reflected in all markets.
Components of the year-over-year change in fourth quarter system passenger revenues included:
The 4.2% traffic increase which reflected traffic growth in all markets.
The 1.2% yield increase which reflected yield growth in the domestic, Atlantic and Pacific markets partly offset by yield
declines in the U.S. transborder and Other markets. The unfavourable impact of a stronger Canadian dollar on foreign
currency denominated passenger revenues which decreased fourth quarter 2012 passenger revenues by $11 million,
partly offset the system yield improvement. The yield decline in the U.S. transborder and Other markets was due to the
impact of increased industry capacity and competitive pricing activities in these markets.
The 4.2% RASM increase was due to the yield growth and a 2.3 percentage point improvement in passenger load factor. RASM
improvements were recorded in the domestic, Atlantic and Pacific markets.
Domestic passenger revenues increased 7.2% from the fourth quarter of 2011
In the fourth quarter of 2012, domestic passenger revenues of $1,051 million increased $70 million or 7.2% from the fourth
quarter of 2011 due to yield growth of 3.9% and a traffic increase of 3.3%.
The table below provides year-over-year percentage changes in domestic passenger revenues and operating statistics for the
fourth quarter 2012 and each of the previous four quarters.
Canada Year-over-Year by Quarter (% Change)
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
Passenger revenues 3.2 5.0 0.8 3.6 7.2
Capacity (ASMs) 2.1 2.0 1.1 0.9 0.1
Traffic (RPMs) 2.1 3.8 1.7 2.3 3.3
Passenger load factor
(pp change) – 1.4 0.5 1.2 2.6
Yield 0.4 0.7 (0.9) 1.1 3.9
RASM 0.4 2.6 (0.3) 2.6 7.3
In the fourth quarter of 2012, domestic capacity was essentially unchanged from the fourth quarter of 2011.
Components of the year-over-year change in fourth quarter domestic passenger revenues included:
The 3.3% traffic increase which reflected traffic growth on all major domestic services.
The 3.9% yield increase which reflected yield growth on all major services with the exception of regional routes within
Ontario where increased industry capacity and competitive pricing activities negatively impacted yields.
The 7.3% RASM increase was due to the yield growth and a 2.6 percentage point improvement in passenger load factor.