Air Canada 2010 Annual Report Download - page 12

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2010 Air Canada Annual Report
12
6. RESULTS OF OPERATIONS – FOURTH QUARTER 2010 VERSUS FOURTH QUARTER 2009
The following table and discussion compares the results of Air Canada for the fourth quarter of 2010 versus the fourth
quarter of 2009.
Fourth Quarter Change
2010 (1) 2009 $%
Operating revenues
Passenger $ 2,296 $ 2,030 $ 266 13
Cargo 124 110 14 13
Other 196 208 (12) (6)
2,616 2,348 268 11
Operating expenses
Aircraft fuel 640 601 39 6
Wages, salaries and benefits 470 418 52 12
Airport and navigation fees 229 228 1 -
Capacity purchase with Jazz 231 227 4 2
Depreciation and amortization 165 165 - -
Aircraft maintenance 173 202 (29) (14)
Food, beverages and supplies 54 69 (15) (22)
Communications and information technology 81 64 17 27
Aircraft rent 84 85 (1) (1)
Commissions 65 46 19 41
Other 339 326 13 4
2,531 2,431 100 4
Operating income (loss) before undernoted item 85 (83) 168
Provision adjustment for cargo investigations, net (1) 46 - 46
Operating income (loss) 131 (83) 214
Non-operating income (expense)
Interest income 9 2 7
Interest expense (81) (87) 6
Interest capitalized 1 - 1
Loss on assets (8) (25) 17
Gain on financial instruments recorded at fair value 8 22 (14)
Other (20) 5 (25)
(91) (83) (8)
Income (loss) before the following items 40 (166) 206
Non-controlling interest (2) (4) 2
Foreign exchange gain 111 108 3
Recovery of (provision for) income taxes (15) 6 (21)
Income (loss) for the period $ 134 $ (56) $ 190
EBITDAR before the provision adjustment for cargo
investigations, net (1) (2) $ 334 $ 167 $ 167
EBITDAR (2) $ 380 $ 167 $ 213
Earning (loss) per share - Diluted $ 0.42 $ (0.25) $ 0.67
(1) In the first quarter of 2008, Air Canada recorded a provision for cargo investigations of $125 million. In the fourth quarter of 2010, Air Canada recorded a net reduction
of $46 million to this provision.
(2) See section 20 “Non-GAAP Financial Measures” in this MD&A for a reconciliation of EBITDAR before the provision adjustment for cargo investigations to operating
income (loss) and EBITDAR to operating income (loss).
(Canadian dollars in millions, except per
share figures)