Air Canada 2012 Annual Report Download - page 15

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2012 Management’s Discussion and Analysis
15
Fourth Quarter 2012 Financial Summary
Operating revenue growth of $142 million or 5% from the fourth quarter of 2011.
Passenger revenue growth of $139 million or 5.8% on a 4.2% growth in system passenger traffic and a 1.2%
improvement in yield. Passenger revenues in the premium cabin increased $12 million or 2.2% on a 3.0% improvement in
yield as premium cabin traffic declined 0.8% year-over-year.
System ASM capacity increase of 1.3% from the fourth quarter of 2011, reflecting capacity growth in all markets. The
system capacity increase was slightly above the 0% to 1.0% fourth quarter 2012 ASM capacity increase projected in Air
Canada’s news release dated November 8, 2012, due to stronger than expected passenger demand.
RASM growth of 4.2%, reflecting RASM increases in the domestic, Atlantic and Pacific markets. The RASM increase was
due to a passenger load factor improvement of 2.3 percentage points and yield growth of 1.2%.
Operating expense decrease of $2 million from the fourth quarter of 2011. In 2012, adjusted CASM decreased 2.0% from
the fourth quarter of 2011, in line with the 2.0% to 3.0% decrease projected in Air Canada’s news release dated
November 8, 2012. Refer to section 20 “Non-GAAP Financial Measures” for additional information.
Operating income of $46 million compared to operating loss of $98 million in the fourth quarter of 2011, an
improvement of $144 million.
Net income of $8 million or $0.03 per diluted share compared to a net loss of $60 million or $0.22 per diluted share in
the fourth quarter of 2011, an improvement of $68 million or $0.25 per diluted share.
EBITDAR of $284 compared to EBITDAR of $162 million in the fourth quarter of 2011, an increase of $122 million. Refer
to section 20 “Non-GAAP Financial Measures” for additional information.
An adjusted net loss of $6 million or $0.02 per diluted share compared to an adjusted net loss of $167 million or $0.60
per diluted share in the fourth quarter of 2011. Refer to section
20 “Non-GAAP Financial Measures” for additional
information.
Negative free cash flow of $23 million compared to negative free cash flow of $62 million in the fourth quarter of 2011,
an improvement of $39 million, mainly due to an increase in net cash flows from operating activities.