Air Canada 2011 Annual Report Download - page 25

Download and view the complete annual report

Please find page 25 of the 2011 Air Canada annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 150

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150

2011 Management’s Discussion and Analysis
25
In the fourth quarter of 2011, Air Canada’s overall capacity was 2.5% higher than the fourth quarter of 2010, with capacity
growth reflected in all markets. The system capacity growth was in line with the 1.5% to 2.5% fourth quarter 2011 ASM
capacity increase projected in Air Canada’s news release dated November 4, 2011.
Components of the year-over-year change in fourth quarter system passenger revenues included:
The system traffic increase which reflected growth in all markets. The traffic increase was slightly above the capacity
growth, resulting in a minimally higher passenger load factor.
The system yield growth which reflected growth in all markets, with the exception of the Atlantic. The overall yield
improvement was due to increased fares and fuel surcharges to partly offset higher fuel costs.
The adjusted system RASM improvement was mainly due to the higher yield.
Domestic passenger revenues increased 3.2% from the fourth quarter of 2010
Domestic passenger revenues of $981 million in the fourth quarter of 2011 increased $31 million or 3.2% from the fourth
quarter of 2010 due to traffic growth and, to a lesser extent, a yield improvement.
The table below provides year-over-year percentage changes in domestic passenger revenues and operating statistics for the
fourth quarter 2011 and each of the previous four quarters.
Canada Year-over-Year by Quarter (% Change)
Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
Passenger Revenues 7.5 8.4 7.9 4.7 3.2
Capacity (ASMs) 0.2 (0.9) (0.2) 0.3 2.1
Traffic (RPMs) 2.0 (0.5) (0.6) 2.1 2.1
Passenger Load Factor
(pp Change) 1.4 0.4 (0.3) 1.5 –
Yield 5.3 8.7 8.4 2.4 0.4
RASM 7.1 9.2 8.0 4.3 0.4
On May 1, 2011, Sky Regional, on behalf of Air Canada, began operating 15 daily flights from Toronto Island’s Billy Bishop
Airport to Montreal’s Pierre Elliott Trudeau International Airport (“Montreal Trudeau Airport”). The domestic capacity growth
in the fourth quarter of 2011 was mainly due to this new service and to an increase in frequencies on Air Canada’s Toronto-
Vancouver service. Components of the year-over-year change in fourth quarter domestic passenger revenues included:
The traffic increase which reflected growth on all major domestic services. The traffic gains were in line with the capacity
growth, resulting in a passenger load factor unchanged from the fourth quarter of 2010.
The yield improvement which was due to fuel-related fare increases to partly offset higher fuel prices.
The RASM improvement reflected the higher yield as passenger load factor was unchanged from the fourth quarter of 2010.