Air Canada 2012 Annual Report Download - page 66

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2012 Air Canada Annual Report
66
17. SENSITIVITY OF RESULTS
Air Canada’s financial results are subject to many different internal and external factors which can have a significant impact
on operating results. The following table describes, on an indicative basis, the financial impact that changes in certain
assumptions would generally have had on Air Canada’s operating results. These guidelines were derived from 2012 levels of
activity and make use of management estimates. The impacts are not additive, do not reflect the interdependent relationship
of the elements and actual results may vary significantly due to a wide range of factors many of which are beyond the control
of Air Canada.
(Canadian dollars in millions, except where indicated)
Key Variable
2012
Measure
Sensitivity Factor
Favourable/(Unfavourable)
Estimated Operating
Income Impact
Revenue Measures
Passenger yield (cents) System 19.0 1% increase in yield $ 100
Canada 25.3 $ 39
Traffic (RPMs) (millions) System 55,646 1% increase in traffic $ 95
Canada 16,403 $ 37
Passenger load factor (%) System 82.7 1 percentage point increase $ 115
RASM (cents) System 15.8 1% increase in RASM $ 98
Cost Measures
Fuel – WTI price (US$/barrel)(1) 95 US$1/barrel increase to WTI $ (25)
Fuel – jet fuel price (CAD cents/litre)(1) 89 1% increase $ (34)
Cost per ASM (cents) 17.4 1% increase in CASM $ (117)
Adjusted cost per ASM (cents)(2) 11.8 1% increase in adjusted CASM $ (79)
Currency Exchange
C$ to US$ C$1 = US$1.00 1 cent increase in exchange rate $ 33
(i.e., $1.01 to $1.00 per US dollar)
(1) Excludes the impact of fuel surcharges and fuel hedging. Refer to section 12 of this MD&A for information on Air Canada’s fuel derivative instruments.
(2) Adjusted CASM is a non-GAAP financial measure. In 2012, CASM was adjusted to exclude the impact of benefit plan amendments, fuel expense and the cost of ground
packages at Air Canada Vacations. Refer to section 20 of this MD&A for additional information.
(Canadian dollars in millions)
Key Variable
2012
Measure
Sensitivity Factor
Favourable/(Unfavourable)
Estimated Pre-Tax
Income Impact
Currency Exchange
C$ to US$ C$1 = US$1.00 1 cent increase in exchange rate $ 54
(i.e., $1.01 to $1.00 per US dollar)