Air Canada 2012 Annual Report Download - page 28

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2012 Air Canada Annual Report
28
U.S. transborder passenger revenues decreased 3.3% from the fourth quarter of 2011
In the fourth quarter of 2012, U.S. transborder passenger revenues of $484 million decreased $16 million or 3.3% from the
fourth quarter of 2011. A 4.2% growth in traffic and an increase in baggage fee revenues did not fully offset a 10.0% decline
in yield.
The table below provides year-over-year percentage changes in U.S. transborder passenger revenues and operating statistics
for the fourth quarter 2012 and each of the previous four quarters.
U.S. Transborder Year-over-Year by Quarter (% Change)
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
Passenger revenues 11.6 13.5 2.2 (0.2) (3.3)
Capacity (ASMs) 3.2 6.2 0.8 1.3 2.7
Traffic (RPMs) 5.3 7.3 (0.8) 1.5 4.2
Passenger load factor
(pp change) 1.4 0.8 (1.2) 0.2 1.1
Yield 5.4 3.9 (0.8) (5.4) (10.0)
RASM 7.4 4.9 (2.3) (5.2) (8.6)
In the fourth quarter of 2012, the U.S. transborder capacity increase of 2.7% was driven by capacity growth on routes to
Florida, Las Vegas and Hawaii and, to a lesser extent, on U.S. short-haul routes, such as Boston, New York and Washington,
D.C. The capacity increases were partly offset by capacity reductions on U.S. long-haul routes, such as Western Canada to
California. Components of the year-over-year change in fourth quarter U.S. transborder passenger revenues included:
The 4.2% traffic increase which reflected traffic growth on all major U.S. transborder services with the exception of U.S.
long-haul routes.
The introduction of a new baggage fee policy on U.S. transborder services effective October 27, 2011.
The 10.0% yield decrease which reflected the impact of increased industry capacity and competitive pricing activities,
particularly on U.S. short-haul routes such as Boston, New York and Washington, D.C.
The 8.6% RASM decrease was due to the lower yield as passenger load factor improved 1.1 percentage points year-over-year.
Baggage fee revenues are not included in Air Canada’s yield and RASM results.
Atlantic passenger revenues increased 12.5% from the fourth quarter of 2011
In the fourth quarter of 2012, Atlantic passenger revenues of $450 million increased $50 million or 12.5% from the fourth
quarter of 2011 due to yield growth of 7.8% and a traffic increase of 5.6%.
The table below provides year-over-year percentage changes in Atlantic passenger revenues and operating statistics for the
fourth quarter 2012 and each of the previous four quarters.
Atlantic Year-over-Year by Quarter (% Change)
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
Passenger revenues (1.0) 6.0 2.3 (0.4) 12.5
Capacity (ASMs) 2.2 3.3 (0.2) (1.7) 0.1
Traffic (RPMs) 1.2 5.9 2.5 (2.0) 5.6
Passenger load factor
(pp change) (0.8) 1.8 2.2 (0.3) 4.1
Yield (3.1) (0.8) 0.1 1.9 7.8
RASM (4.0) 1.7 2.8 1.6 13.7