Air Canada 2008 Annual Report Download - page 16

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2008 Air Canada Annual Report
16
6. RESULTS OF OPERATIONS – FOURTH QUARTER 2008 VERSUS FOURTH QUARTER 2007
The following table and discussion compares the results of Air Canada for the fourth quarter of 2008 to its results for the
fourth quarter of 2007.
(Canadian dollars in millions,
except per share figures)
Fourth Quarter Change
2008 2007 $ %
Operating revenues
Passenger $ 2,182 $ 2,196 $ (14) (1)
Cargo 113 142 (29) (20)
Other 203 175 28 16
2,498 2,513 (15) (1)
Operating expenses
Aircraft fuel 792 615 177 29
Wages, salaries and benefits 444 468 (24) (5)
Airport and navigation fees 230 238 (8) (3)
Capacity purchase with Jazz 237 227 10 4
Depreciation and amortization 174 140 34 24
Aircraft maintenance 157 173 (16) (9)
Food, beverages and supplies 70 67 3 4
Communications and information technology 72 67 5 7
Aircraft rent 80 62 18 29
Commissions 40 37 3 8
Other 348 347 1 -
2,644 2,441 203 8
Operating income (loss) (146) 72 (218)
Non-operating income (expense)
Interest income 11 22 (11)
Interest expense (88) (89) 1
Interest capitalized 6 20 (14)
Loss on capital assets (5) - (5)
Gain (loss) on financial instruments recorded at fair value 32 (1 ) 33
Other - (4) 4
(44) (52) 8
Income(loss)beforethefollowingitems (190) 20 (210)
Non-controlling interest (4) (3) (1)
Foreign exchange gain (loss) (527) 20 (547)
Provision for income taxes (6) (2) (4)
Income (loss) for the period $ (727) $ 35 $ (762)
EBITDAR (1) $ 108 $ 274 $ (166)
Earnings per share - Basic and diluted $ (7.27) $ 0.35 $ (7.62)
(1) See section 20 “Non-GAAP Financial Measures” in this MD&A for a reconciliation of EBITDAR to operating income (loss).
In the fourth quarter of 2008, Air Canada reported an operating loss of $146 million compared to operating income of $72
million in the fourth quarter of 2007, a deterioration of $218 million. In the fourth quarter of 2008, EBITDAR amounted to
$108 million compared to EBITDAR of $274 million in the same period in 2007, a decrease of $166 million.