Air Canada 2012 Annual Report Download - page 6

2012 Air Canada Annual Report
6
2. INTRODUCTION AND KEY ASSUMPTIONS
In this Management’s Discussion and Analysis of Results of Operations and Financial Condition (“MD&A”), the “Corporation”
refers, as the context may require, to Air Canada and/or one or more of Air Canada’s subsidiaries. This MD&A provides the
reader with a review and analysis, from the perspective of management, of Air Canada’s financial results for the fourth quarter
of 2012 and the full year 2012. This MD&A should be read in conjunction with Air Canada’s audited consolidated financial
statements and notes for 2012. All financial information has been prepared in accordance with generally accepted accounting
principles in Canada (“GAAP”), as set out in the Handbook of the Canadian Institute of Chartered Accountants – Part 1 (“CICA
Handbook”), which incorporates International Financial Reporting Standards (“IFRS”) as issued by the International Accounting
Standards Board (“IASB”), except for any financial information specifically denoted otherwise.
Except as otherwise noted, monetary amounts are stated in Canadian dollars. For an explanation of certain terms used in this
MD&A, refer to section 21 “Glossary” of this MD&A. Except as otherwise noted or where the context may otherwise require,
this MD&A is current as of February 6, 2013. Forward-looking statements are included in this MD&A. See “Caution Regarding
Forward-Looking Information” below for a discussion of risks, uncertainties and assumptions relating to these statements. For
a description of risks relating to Air Canada, refer to section 18 “Risk Factors” of this MD&A. Air Canada issued a news release
dated February 7, 2013 reporting on its results for the fourth quarter of 2012 and the full year 2012. This news release is
available on Air Canada’s website at aircanada.com and on SEDAR’s website at www.sedar.com. For further information on
Air Canada’s public disclosures, including Air Canada’s Annual Information Form, consult SEDAR at www.sedar.com.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
Air Canada’s public communications may include written or oral forward-looking statements within the meaning of applicable
securities laws. Such statements are included in this MD&A and may be included in other communications, including filings
with regulatory authorities and securities regulators. Forward-looking statements may be based on forecasts of future results
and estimates of amounts not yet determinable. These statements may involve, but are not limited to, comments relating to
strategies, expectations, planned operations or future actions. Forward-looking statements are identified by the use of terms
and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”,
“would”, and similar terms and phrases, including references to assumptions.
Forward-looking statements, by their nature, are based on assumptions, including those described herein and are subject to
important risks and uncertainties. Forward-looking statements cannot be relied upon due to, amongst other things, changing
external events and general uncertainties of the business. Actual results may differ materially from results indicated in
forward-looking statements due to a number of factors, including without limitation, industry, market, credit and economic
conditions, the ability to reduce operating costs and secure financing, pension issues, energy prices, employee and labour
relations, currency exchange and interest rates, competition, war, terrorist acts, epidemic diseases, environmental factors
(including weather systems and other natural phenomena and factors arising from man-made sources), insurance issues and
costs, changes in demand due to the seasonal nature of the business, supply issues, changes in laws, regulatory developments
or proceedings, pending and future litigation and actions by third parties as well as the factors identified throughout this
MD&A and, in particular, those identified in section 18 “Risk Factors” of this MD&A. The forward-looking statements
contained in this MD&A represent Air Canada’s expectations as of February 6, 2013 (or as of the date they are otherwise
stated to be made), and are subject to change after such date. However, Air Canada disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as
required under applicable securities regulations.
KEY ASSUMPTIONS
Assumptions were made by Air Canada in preparing and making forward-looking statements. As part of its assumptions, Air
Canada assumes Canadian GDP growth of 1.5% to 2.0% for 2013. In addition, Air Canada expects that the Canadian dollar will
trade, on average, at C$1.00 per U.S. dollar in the first quarter of 2013 and for the full year 2013 and that the price of jet fuel
will average 88 cents per litre for the first quarter of 2013 and 89 cents per litre for the full year 2013.