Air Canada 2009 Annual Report Download - page 24

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2009 Air Canada Annual Report
24
System passenger revenues decreased 12.5% from 2008
Compared to 2008, passenger revenues decreased $1,214 million or 12.5% to $8,499 million in 2009 due to lower yield
and traffi c. A decline in passenger revenues from the premium cabin accounted for $405 million or over 33% of the total
decrease in system passenger revenues. In 2009, Air Canada reduced its overall capacity by 4.4%. Capacity in the North
American market was reduced by 5.1% while capacity in the international market was reduced by 3.7%, from 2008.
Components of the year-over-year change in system passenger revenues included:
• A traffi c decline of 5.2% on a capacity reduction of 4.4%, which resulted in a 0.7 percentage point decrease
in passenger load factor compared to 2008. The system capacity reduction of 4.4% in 2009 compared to
2008 was in line with the 4.25% to 4.75% ASM capacity reduction projected in Air Canada’s news release dated
November 6, 2009.
• A system yield decrease of 7.6% from 2008, which was due to a weak economy, reduced high-yield business
travel and increased competitive pricing activities. A reduction in fuel surcharges was also a factor in the yield decline
year-over-year.
• A weaker Canadian dollar in 2009 versus 2008, which had a positive impact on foreign currency denominated
revenues of $184 million in 2009.
• A RASM decrease of 8.4% versus 2008, which was mainly due to the yield decline, but also to the decrease in
passenger load factor.
The table below describes year-over-year percentage changes in passenger revenues, capacity, traffi c, passenger load factor,
yield and RASM.
Year 2009
Versus
Year 2008
Passenger
Revenue
% Change
Capacity
(ASMs)
% Change
Traffi c
(RPMs)
% Change
Passenger
Load Factor
pp Change
Yield
% Change
RASM
% Change
Canada (12.6) (3.7) (4.1) (0.3) (8.7) (9.1)
US transborder (12.5) (7.7) (9.6) (1.6) (3.2) (5.1)
Atlantic (8.6) 1.4 (0.6) (1.7) (8.0) (9.9)
Pacifi c (16.7) (12.5) (11.7) 0.8 (5.7) (4.8)
Other (15.8) (1.7) (2.3) (0.5) (13.8) (14.4)
System (12.5) (4.4) (5.2) (0.7) (7.6) (8.4)
The table below describes year-over-year percentage changes in system passenger revenues, capacity, traffi c, passenger load
factor, yield and RASM by quarter and for the full year.
2009 versus 2008 (% change)
System Q1 Q2 Q3 Q4 Full Year
Passenger Revenue (13.0) (16.1) (13.2) (7.0) (12.5)
Capacity (ASMs) (10.3) (5.4) (3.3) 2.0 (4.4)
Traffi c (RPMs) (10.9) (7.9) (2.1) 0.4 (5.2)
Passenger Load Factor (pp Change) (0.5) (2.2) 1.0 (1.3) (0.7)
Yield (2.3) (8.9) (11.2) (7.3) (7.6)
RASM (3.0) (11.3) (10.2) (8.8) (8.4)