Air Canada 2010 Annual Report Download - page 17

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2010 Management’s Discussion and Analysis
17
Components of the year-over-year change in fourth quarter Pacific passenger revenues included:
t " USBGGJD JODSFBTF PG  PO DBQBDJUZ HSPXUI PG  XIJDI SFTVMUFE JO B QBTTFOHFS MPBE GBDUPS EFDMJOF PG
0.1 percentage points from the fourth quarter of 2009. Air Canada increased its capacity on the Pacific with the
introduction of a Calgary-Narita non-stop service until October 2010, additional frequencies from Vancouver to
Beijing and Shanghai, the use of larger aircraft on routes to Japan and additional frequencies on routes to Korea. The
strong year-over-year traffic gains were driven by attracting passengers originating from Air Canada’s international
points of sale as well as from Canada and the U.S.
t "ZJFMEJODSFBTFPGGSPNUIFGPVSUIRVBSUFSPGXIJDISFGMFDUFEZJFMEJNQSPWFNFOUTPOBMMNBKPS1BDJGJD
services with the exception of China where the yield was slightly below the same quarter in 2009. The year-over-
year fourth quarter Pacific yield improvement was achieved despite a $4 million unfavourable impact of a stronger
Canadian dollar on foreign currency denominated Pacific passenger revenues.
t "1BDJGJD3"4.JODSFBTFPGGSPNUIFGPVSUIRVBSUFSPGXIJDIXBTEVFUPUIFZJFMEHSPXUI
Other passenger revenues increased 15.4% from the fourth quarter of 2009
Other passenger revenues (comprised of Australia, Caribbean, Mexico, Central and South America) of $193 million in the
fourth quarter of 2010 increased $26 million or 15.4% from the fourth quarter of 2009 due to traffic and yield growth.
A year-over-year capacity growth of 7.2% in the fourth quarter of 2010 was largely driven by increased frequencies to
the Caribbean and Mexico and, starting in June 2010, increased frequencies to Caracas and Bogotá.
The table below provides year-over-year percentage changes in Other 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)
Other Q4’09 Q1'10 Q2'10 Q3’10 Q4’10
Passenger Revenues (10.8) (0.5) 15.3 18.2 15.4
Capacity (ASMs) (0.1) 4.3 10.1 10.7 7.2
Traffic (RPMs) 3.3 6.6 12.7 13.8 9.4
Passenger Load Factor (pp Change) 2.6 1.7 1.8 2.3 1.6
Yield (13.7) (6.6) 2.2 3.7 5.4
RASM (10.7) (4.6) 4.5 6.7 7.5
Components of the year-over-year change in fourth quarter Other passenger revenues included:
t "USBGGJDJODSFBTFPGPOUIFDBQBDJUZHSPXUIPGXIJDISFTVMUFEJOBQBTTFOHFSMPBEGBDUPSJNQSPWFNFOUPG
1.6 percentage points versus the same quarter of 2009.
t "ZJFMEJODSFBTFPGGSPNUIFGPVSUIRVBSUFSPGXIJDISFGMFDUFEBTJHOJGJDBOUZJFMEJNQSPWFNFOUPOSPVUFT
to South America. Yields on certain routes to traditional leisure destinations were negatively impacted by aggressive
competitive pricing activities. The year-over-year fourth quarter Other yield improvement was achieved despite a
$2 million unfavourable impact of a stronger Canadian dollar on foreign currency denominated Other passenger
revenues.
t "3"4.JODSFBTFPGGSPNUIFGPVSUIRVBSUFSPGXIJDIXBTNBJOMZEVFUPUIFZJFMEHSPXUICVUBMTPUPUIF
passenger load factor improvement.