Air Canada 2011 Annual Report Download - page 17

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2011 Management’s Discussion and Analysis
17
The table below provides year-over-year percentage changes in cargo revenues and operating statistics for the full year of
2011 versus the full year of 2010.
Full Year 2011
Versus
Full Year 2010
Cargo
Revenue
% Change
Capacity
(ETMs)
% Change
Rev / ETM
% Change
Traffic
(RTMs)
% Change
Yield / RTM
% Change
Canada (4.4) (7.1) 2.9 (10.2) 5.3
U.S. transborder 0.3 13.6 (11.7) (0.2) 0.5
Atlantic 18.2 5.7 11.8 2.1 15.8
Pacific (11.1) 7.2 (17.1) (6.4) (5.0)
Other 12.3 3.1 9.0 3.9 8.0
System 3.3 4.6 (1.3) (1.7) 5.0
Components of the year-over-year change in cargo revenues in the full year included:
The growth in cargo yield which was due to increased fuel surcharges year-over-year. Partially offsetting this increase was
the unfavourable impact of a stronger Canadian dollar on foreign currency denominated revenues (mainly U.S. dollars),
which reduced cargo revenues by $3 million in 2011.
The overall decline in cargo traffic which was largely due to a continuing weak economic environment in Asia, in part due
to the Japan earthquake and its aftermath.
Refer to section 7 of this MD&A for year-over-year percentage changes in cargo revenues, capacity, revenue per ETM, traffic
and yield by quarter for the fourth quarter 2011 and each of the previous four quarters.
Other revenues increased 3% from 2010
Other revenues consist primarily of revenues from the sale of the ground portion of vacation packages, ground handling
services, and other airline-related services, as well as revenues related to the lease or sublease of aircraft to third parties.
Other revenues of $923 million in 2011 increased $30 million or 3% from 2010. The growth in other revenues was due to a
$33 million increase in third party ground package revenues at Air Canada Vacations, which was mainly due to higher
passenger volumes, and by an increase in cancellation and change fees year-over-year. Partly offsetting these increases were a
decrease in aircraft sublease revenues due to fewer aircraft being subleased to third parties compared to 2010, and the
unfavourable impact of a stronger Canadian dollar on U.S. currency denominated aircraft lease and sublease revenues.