Air Canada 2011 Annual Report Download - page 23

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2011 Management’s Discussion and Analysis
23
7. RESULTS OF OPERATIONS – FOURTH QUARTER 2011 VERSUS FOURTH QUARTER 2010
The following table and discussion compares the results of Air Canada for the fourth quarter of 2011 versus the fourth quarter
of 2010.
Fourth Quarter Change
(Canadian dollars in millions, except per share figures) 2011 2010 $ %
Operating revenues
Passenger $2,374 $ 2,296 $78 3
Cargo 125 124 1 1
Other 200 196 4 2
2,699 2,616 83 3
Operating expenses
Aircraft fuel 808 640 168 26
Wages, salaries, and benefits 501 487 14 3
Airport and navigation fees 237 229 8 3
Capacity purchase agreements 251 241 10 4
Depreciation, amortization and impairment 174 227 (53) (23)
Aircraft maintenance 212 164 48 29
Sales and distribution costs 140 146 (6) (4)
Food, beverages and supplies 53 54 (1) (2)
Communications and information technology 48 50 (2) (4)
Aircraft rent 86 86 – –
Other 287 277 10 4
2,797 2,601 196 8
Operating income (loss) before exceptional item (98) 15 (113)
Provision adjustment for cargo investigations, net(1) – 46 (46)
Operating income (loss) (98) 61 (159)
Non-operating income (expense)
Foreign exchange gain 114 136 (22)
Interest income 10 9 1
Interest expense (76) (86) 10
Net financing expense relating to employee benefit liabilities (4) (18) 14
Gain (loss) on financial instruments recorded at fair value (5) 8 (13)
Other (1) (21) 20
38 28 10
Income (loss) before income taxes (60) 89 (149)
Recovery of (provision for) income taxes – – –
Net income (loss) for the period $(60) $ 89 $(149)
EBITDAR before the provision adjustment for cargo investigations, net(1) (2) $ 162 $ 328 $(166)
EBITDAR(2) $ 162 $ 374 $(212)
Net income (loss) per share – Diluted $ (0.22) $ 0.27 $ (0.49)
(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).