Air Canada 2006 Annual Report Download - page 66

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19. OUTLOOK
A fundamental building block of the airline industry is to match capacity with demand. Air Canada has
successfully pursued this strategy as evidenced by its annual record load factors over the last three years. In
2006, Air Canada Services flew 61.1 billion available seat miles, an increase of 4 percent as compared to 2005.
Air Canada Services had a load factor of 80.2 percent in 2006 versus 79.5 percent in 2005, an increase of 0.7
percentage points.
As at December 31, 2006, Air Canada operated 199 aircraft and 133 aircraft were operated by Jazz as Covered
Aircraft as defined under the Jazz CPA. Air Canada anticipates operating 205 to 208 aircraft by December 31,
2007.
Twenty-five Embraer 190 aircraft are expected to be delivered by December 31, 2007 of which twenty-four are
expected to be in operation prior to December 31, 2007. Eight Boeing 777 aircraft, inclusive of the one leased
from ILFC, are expected to be delivered and in operation prior to December 31, 2007. Air Canada is planning
to remove from service approximately 23 aircraft which consist of eight wide-body aircraft and 15 narrow-body
aircraft. These aircraft removals would be in the form of aircraft retirements, returns to lessors or subleases.
The Jazz operated Covered Aircraft is expected to remain at 133 aircraft for 2007. Capacity for Air Canada
Services is expected to grow within a range of 3 to 4 percent in 2007 as compared to 2006.
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