Air Canada 2010 Annual Report Download - page 23

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2010 Management’s Discussion and Analysis
23
7. RESULTS OF OPERATIONS – FULL YEAR 2010 VERSUS FULL YEAR 2009
The following table and discussion compares the results of Air Canada for the full year of 2010 versus the full year of 2009.
(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)
Full Year Change
2010(1) 2009 $%
Operating revenues 
Passenger $ 9,427 $ 8,499 $ 928 11
Cargo 466 358 108 30
Other 893 882 11 1
10,786 9,739 1,047 11
Operating expenses
Aircraft fuel 2,652 2,448 204 8
Wages, salaries and benefits 1,885 1,751 134 8
Airport and navigation fees 961 971 (10) (1)
Capacity purchase with Jazz 934 973 (39) (4)
Depreciation and amortization 679 660 19 3
Aircraft maintenance 677 759 (82) (11)
Food, beverages and supplies 280 291 (11) (4)
Communications and information technology 316 293 23 8
Aircraft rent 346 335 11 3
Commissions 259 186 73 39
Other 1,436 1,388 48 3
10,425 10,055 370 4
Operating income (loss) before the undernoted item 361 (316) 677
Provision adjustment for cargo investigations, net (1) 46 - 46
Operating income (loss) 407 (316) 723
Non-operating income (expense) 
Interest income 19 14 5
Interest expense (378) (373) (5)
Interest capitalized 1 4 (3)
Loss on assets (7) (95) 88
Gain (loss) on financial instruments recorded at fair value (3) 95 (98)
Other (20) - (20)
(388) (355) (33)
Income (loss) before the following items 19 (671) 690
Non-controlling interest (9) (15) 6
Foreign exchange gain 145 657 (512)
Recovery of (provision for) income taxes (48) 5 (53)
Income (loss) for the period $ 107 $ (24) $ 131
EBITDAR before the provision adjustment for cargo
investigations, net (1) (2) $ 1,386 $ 679 $ 707
EBITDAR (2) $ 1,432 $ 679 $ 753
Earnings (loss) per share - Diluted $ 0.37 $ (0.18) $ 0.55