Air Canada 2010 Annual Report Download - page 14

2010 Air Canada Annual Report
14
passenger revenues. The stronger Canadian dollar in the fourth quarter of 2010 versus the fourth quarter of 2009
decreased the Canadian dollar value of sales in foreign countries and had a negative impact of $32 million on system
passenger revenues.
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and the passenger load factor improvement. Adjusted RASM in the premium cabin increased 12.2% year-over-year
while RASM in the economy cabin improved 0.4% from the fourth quarter of 2009.
Domestic passenger revenues increased 7.5% from the fourth quarter of 2009
Domestic passenger revenues of $950 million in the fourth quarter of 2010 increased $67 million or 7.5% from the fourth
quarter of 2009 due to a yield improvement and traffic growth.
The table below provides year-over-year percentage changes in domestic passenger revenues, capacity, traffic, passenger
load factor, yield and RASM by quarter for the fourth quarter 2010 and each of the previous four quarters.
Year-over-Year by Quarter (% Change)
Canada Q4’09 Q1'10 Q2'10 Q3’10 Q4’10
Passenger Revenues (7.9) 1.5 6.8 5.9 7.5
Capacity (ASMs) (0.6) 2.6 (0.2) 0.8 0.2
Traffic (RPMs) (1.3) 0.8 2.9 1.7 2.0
Passenger Load Factor (pp Change) (0.5) (1.4) 2.5 0.7 1.4
Yield (6.7) 0.6 3.7 4.1 5.3
RASM (7.3) (1.1) 7.0 5.0 7.1
Components of the year-over-year change in fourth quarter domestic passenger revenues included:
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passenger load factor.
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cabin and the premium cabin. Yield improvements were recorded on all major domestic services with the largest
improvement reflected on routes to and from western Canada (short and long haul). The yield improvement was
mainly due to an increase in business traffic resulting from more favourable economic conditions assisted by targeted
Executive cabin fare products, which improved both traffic and average fare performance. Air Canada’s Rapidair
routes, linking Toronto and Montreal/Ottawa, also reflected meaningful yield improvements over the same quarter
in 2009 due to the return of higher yielding business traffic.
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impact of a stronger Canadian dollar on foreign currency denominated domestic passenger revenues.
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also to the passenger load factor improvement.
U.S. transborder passenger revenues increased 10.7% from the fourth quarter of 2009
U.S. transborder passenger revenues of $448 million in the fourth quarter of 2010 increased $43 million or 10.7% from
the fourth quarter of 2009 due to traffic growth. In the fourth quarter of 2010, U.S. transborder capacity increased 11.7%
from the fourth quarter of 2009, largely driven by growth in connecting traffic from the U.S. in support of Air Canada’s
international expansion initiatives.