Air Canada 2013 Annual Report Download - page 24

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2013 Air Canada Annual Report
24
Cargo revenues decreased 2.9% from 2012
In 2013, cargo revenues of $474 million decreased $14 million or 2.9% from 2012 due to a yield decline of 3.4% partly offset
by traffic growth of 0.5%.
The table below provides cargo revenue by geographic region for 2013 and 2012.
Cargo Revenue Full Year 2013
$ Million
Full Year 2012
$ Million
Change
$ Million
Canada 63 68 (5)
U.S. transborder 18 17 1
Atlantic 171 177 (6)
Pacific 185 184 1
Other 37 42 (5)
System 474 488 (14)
The table below provides year-over-year percentage changes in cargo revenues and operating statistics for 2013 versus 2012.
Full Year 2013
Versus
Full Year 2012
Cargo
Revenue
% Change
Capacity
(ETMs)
% Change
Rev / ETM
% Change
Traffic
(RTMs)
% Change
Yield / RTM
% Change
Canada (7.7) 1.9 (9.4) (6.4) (1.4)
U.S. transborder 0.9 0.5 0.4 3.4 (2.4)
Atlantic (3.2) 1.4 (4.6) (0.8) (2.5)
Pacific 1.1 5.7 (4.4) 3.7 (2.5)
Other (13.2) (7.6) (6.0) (5.9) (7.8)
System (2.9) 2.1 (4.9) 0.5 (3.4)
Components of the year-over-year change in full year cargo revenues included:
• The 3.4% yield decrease which reflected yield declines in all markets. Despite favourable currency impacts, cargo yields in
2013 were negatively impacted by aggressive pricing activities in an effort to stimulate traffic.
• The 0.5% traffic increase which reflected traffic growth in the U.S. transborder and Pacific markets. Weaker demand for
cargo services and increased competition were the main reasons for the traffic declines in the domestic, Atlantic and
Other markets. The Atlantic market was also impacted by weaker economic conditions.
Refer to section 7 of this MD&A for year-over-year percentage changes in cargo revenues, capacity, traffic, passenger load
factor, yield and RASM by quarter for the fourth quarter of 2013 and each of the four previous quarters.
Other revenues decreased $2 million from 2012
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.
In 2013, Other revenues of $887 million decreased $2 million from 2012. A reduction in aircraft sublease and property lease
revenues year-over-year was almost fully offset by an increase in passenger and airline-related fees and by higher ground
package revenues at Air Canada Vacations when compared to 2012.