Air Canada 2011 Annual Report Download - page 16

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2011 Air Canada Annual Report
16
Pacific passenger revenues increased 8.3% from 2010
Pacific passenger revenues of $1,177 million in 2011 increased $90 million or 8.3% from 2010 due to traffic and yield growth.
The capacity growth in 2011 mainly reflected a capacity increase on routes to China partly offset by a capacity decrease on
routes to Japan. Air Canada estimates that the impact of the Japan earthquake and is aftermath reduced passenger revenues
by $28 million in 2011. Components of the year-over-year change in Pacific passenger revenues included:
The traffic increase which reflected growth on routes to China and Korea and, to a lesser extent, Hong Kong. The traffic
increase was below the capacity growth, resulting in a lower passenger load factor.
The yield improvement which was in part due to yield improvements in the economy cabin on routes to Japan and Korea,
as well as to fuel surcharges to offset higher fuel prices. A gain in premium cabin traffic was also a factor in the yield
improvement. The yield improvement was achieved in spite of a $5 million unfavourable impact of a stronger Canadian
dollar on foreign currency denominated Pacific passenger revenues.
The RASM improvement was due to the yield growth in the economy cabin, combined with overall traffic gains in the
premium cabin.
Other passenger revenues increased 16.1% from 2010
Other passenger revenues (comprised of Australia, Caribbean, Mexico and Central and South America) of $919 million in 2011
increased $128 million or 16.1% from 2010, mainly due to yield and traffic growth. In 2011, the capacity growth was largely
due to capacity increases on routes to Mexico, Chile and Argentina and, to a lesser extent, on routes to the Caribbean.
Components of the year-over-year increase in Other passenger revenues included:
The overall traffic increase which reflected growth on all major services. The overall traffic increase slightly exceeded the
capacity growth, resulting in a minimally higher passenger load factor.
The overall yield improvement which reflected growth on all major services. The overall yield improvement was due to
increased fares and fuel surcharges to partly offset higher fuel prices. Routes to Australia and South America recorded
significant yield improvements year-over-year, on stronger passenger demand and increased network flows. A gain in
premium cabin traffic was also a factor in the yield improvement. The year-over-year yield improvement was achieved in
spite of a $2 million unfavourable impact of a stronger Canadian dollar on foreign currency denominated Other passenger
revenues.
The overall RASM improvement was mainly due to the yield growth.
Cargo revenues increased 3.3% from 2010
In the full year of 2011, cargo revenues amounted to $481 million, a $15 million or 3.3% increase from 2010 due to a yield
improvement.
The table below provides cargo revenue by geographic region for the full year of 2011 and the full year of 2010.
Cargo Revenue Full Year 2011
$ Million
Full Year 2010
$ Million $ Change % Change
Canada 66 69 (3) (4.4)
U.S. transborder 17 17 – 0.3
Atlantic 194 164 30 18.2
Pacific 146 164 (18) (11.1)
Other 58 52 6 12.3
System 481 466 15 3.3