Air Canada 2010 Annual Report Download - page 24

2010 Air Canada Annual Report
24
System passenger revenues increased 10.9% from 2009
Compared to 2009, system passenger revenues increased $928 million or 10.9% to $9,427 million in 2010 due to traffic
and yield growth. In 2010, premium cabin revenues increased $378 million or 23.3% due to a 14.3% increase in premium
cabin traffic and a 7.9% improvement in premium cabin yield.
In 2010, Air Canada’s overall capacity was 7.0% higher than in 2009, with capacity growth reflected in all markets. Domestic
capacity increased 0.8% while, on a combined basis, capacity in the international and U.S. transborder markets increased
10.0% from 2009.
The table below provides year-over-year percentage changes in full year passenger revenues, capacity, traffic, passenger load
factor, yield and RASM.
Year 2010
Versus
Year 2009
Passenger
Revenue
% Change
Capacity
(ASMs)
% Change
Traffic
(RPMs)
% Change
Passenger
Load Factor
pp Change

Yield
% Change

RASM
% Change
Canada 5.5 0.8 1.9 0.8 3.5 4.6
US transborder 9.5 8.5 9.3 0.6 - 0.8
Atlantic 14.0 7.1 6.7 (0.3) 6.7 6.3
Pacific 31.1 18.4 22.3 2.8 7.2 10.7
Other 10.4 7.6 10.1 1.8 0.2 2.5
System 10.9 7.0 8.3 1.0 2.3 3.6
Components of the year-over-year change in system passenger revenues included:
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improvement of 1.0 percentage points from 2009. The system capacity growth of 7.0% in 2010 compared to 2009
was in line with the 6.5% to 7.0% ASM capacity increase projected in Air Canada’s news release dated November 4,
2010.
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well as the impact of Air Canada’s renewed focus on improving the quality of its revenues and promoting its business
class services. The year-over-year yield improvement was achieved in spite of an unfavourable impact relating to the
stronger Canadian dollar on foreign currency denominated passenger revenues. The stronger Canadian dollar in 2010
versus 2009 decreased the Canadian dollar value of sales in foreign countries and had a negative impact of $293
million on system passenger revenues.
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improvement.
Domestic passenger revenues increased 5.5% from 2009
Domestic passenger revenues of $3,790 million in 2010 increased $199 million or 5.5% from 2009 due to yield and traffic
growth. Components of the year-over-year change in domestic passenger revenues included:
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passenger load factor.
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cabin. Yield improvements were recorded on all major domestic services with the largest improvements reflected
on routes to and from western Canada (short and long haul) and on Rapidair routes, linking Toronto and Montreal/
Ottawa. An increase in business traffic resulting from more favourable economic conditions and assisted by targeted
Executive cabin fare products, which improved both traffic and average fare performance, and the impact of higher-
yielding traffic driven by the Vancouver 2010 Winter Olympic Games were contributing factors to the year-over-year
yield improvement. The domestic yield improvement was achieved in spite of a $48 million unfavourable impact of
a stronger Canadian dollar on foreign currency denominated domestic passenger revenues.