Air Canada 2010 Annual Report Download - page 6

2010 Air Canada Annual Report
6
2. INTRODUCTION
In this Management’s Discussion and Analysis of Results of Operations and Financial Condition (“MD&A”), the “Corporation”
refers to, as the context may require, Air Canada and/or one or more of Air Canada’s subsidiaries.
Air Canada’s 2010 MD&A provides the reader with a view and analysis, from the perspective of management, of Air Canada’s
financial results for the fourth quarter of 2010 and for the full year 2010. This MD&A should be read in conjunction with
Air Canada’s audited consolidated financial statements and notes for 2010. All financial information has been prepared
in accordance with generally accepted accounting principles in Canada (“GAAP”), unless indicated otherwise. Except as
otherwise noted, all monetary amounts are stated in Canadian dollars. For an explanation of certain terms used in this
MD&A, refer to section 21 “Glossary” of this MD&A. Except as otherwise noted, this MD&A is current as of February 9,
2011.
Forward-looking statements are included in this MD&A. See “Caution Regarding Forward-Looking Information” below for
a discussion of risks, uncertainties and assumptions relating to these statements. For a description of risks relating to Air
Canada, refer to section 18 “Risk Factors” of this MD&A.
Air Canada issued a news release dated February 10, 2011, reporting on its results for the fourth quarter of 2010 and for the
full year 2010. This news release is available on Air Canada’s website at aircanada.com and on SEDAR at www.sedar.com.
For further information on Air Canada’s public disclosure file, including Air Canada’s Annual Information Form, consult Air
Canada’s website at aircanada.com or SEDAR at www.sedar.com.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
Air Canada’s public communications may include written or oral forward-looking statements within the meaning of applicable
securities laws. Such statements are included in this MD&A and may be included in other communications, including filings
with regulatory authorities and securities regulators. Forward-looking statements may be based on forecasts of future results
and estimates of amounts not yet determinable. These statements may involve, but are not limited to, comments relating to
strategies, expectations, planned operations or future actions. Forward-looking statements are identified by the use of terms
and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”,
“would”, and similar terms and phrases, including references to assumptions.
Forward-looking statements, by their nature, are based on assumptions, including those described herein and are subject to
important risks and uncertainties. Forward-looking statements cannot be relied upon due to, amongst other things, changing
external events and general uncertainties of the business. Actual results may differ materially from results indicated in forward-
looking statements due to a number of factors, including without limitation, industry, market, credit and economic conditions,
the ability to reduce operating costs and secure financing, pension issues, energy prices, currency exchange and interest rates,
employee and labour relations, competition, war, terrorist acts, epidemic diseases, environmental factors (including weather
systems and other natural phenomena and factors arising from man-made sources), insurance issues and costs, changes in
demand due to the seasonal nature of the business, supply issues, changes in laws, regulatory developments or proceedings,
pending and future litigation and actions by third parties as well as the factors identified throughout this MD&A and, in
particular, those identified in section 18 “Risk Factors” of this MD&A. The forward-looking statements contained in this MD&A
represent Air Canada’s expectations as of February 9, 2011 (or as of the date they are otherwise stated to be made), and are
subject to change after such date. However, Air Canada disclaims any intention or obligation to update or revise any forward-
looking statements whether as a result of new information, future events or otherwise, except as required under applicable
securities regulations.
Assumptions were made by Air Canada in preparing and making forward-looking statements. Air Canada assumes that the
North American economy will continue to recover in 2011. In addition, Air Canada expects that the Canadian dollar will trade,
on average, at C$1.00 per U.S. dollar in the first quarter of 2011 and C$1.02 per U.S. dollar for the full year 2011 and that the
price of fuel will average 76 cents per litre for the first quarter of 2011 and 80 cents per litre for the full year 2011.