Air Canada 2008 Annual Report Download - page 4

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2008 Air Canada Annual Report
4
Few in business will lament
the passing of 2008, and Air
Canada is no exception. During
the year, our company faced an
unprecedented spike in the price of
fuel, adverse fluctuations in foreign
exchange and the onset of a severe
global recession. As a result of
these and other negative factors,
the airline incurred an annual loss
of $1.025 billion.
This is a deeply disappointing
result. Moreover, it is evident that
2009 will be another challenging
year for the economy and
consequently our airline.
In reviewing Air Canada’s 2008
performance, peeling back the
non-controllable costs from our
results reveals a more nuanced
story than told by the bottom
line number alone. Our company
performed solidly on an operating
basis, particularly when compared
with other North American
network carriers. It recorded its
fifth consecutive year of record
load factors, increased unit revenue
5.3 per cent over the previous year
and contained its operating loss to
$39 million despite very difficult
economic conditions.
Such achievements were
made possible by a disciplined
approach to capacity and pricing
management accompanied by
strict cost controls. We reduced
unprofitable flying by lowering our
capacity by 1.2 per cent over 2007,
MESSAGE FROM THE PRESIDENT
AND CEO OF AIR CANADA