Air Canada 2013 Annual Report Download - page 29

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2013 Management’s Discussion and Analysis
29
7. RESULTS OF OPERATIONS – FOURTH QUARTER 2013 VERSUS FOURTH QUARTER 2012
The following table and discussion compares results of Air Canada for the fourth quarter 2013 versus the fourth quarter of
2012.
Fourth Quarter Change
(Canadian dollars in millions, except per share figures) 2013 2012 $ %
Operating revenues
Passenger $2,560 $ 2,513 $47 2
Cargo 128 126 2 2
Other 206 200 6 3
Total revenues 2,894 2,839 55 2
Operating expenses
Aircraft fuel 831 821 10 1
Wages, salaries, and benefits 553 528 25 5
Benefit plan amendments(1) (82) – (82) –
Capacity purchase agreements 280 263 17 6
Airport and navigation fees 232 231 1 –
Aircraft maintenance 158 161 (3) (2)
Sales and distribution costs 138 133 5 4
Depreciation, amortization and impairment 148 155 (7) (5)
Aircraft rent 76 81 (5) (6)
Food, beverages and supplies 71 68 3 4
Communications and information technology 45 47 (2) (4)
Other 309 304 5 2
Total operating expenses 2,759 2,792 (33) (1)
Operating income 135 47 88
Non-operating income (expense)
Foreign exchange gain (loss) (55) 9 (64)
Interest income 10 9 1
Interest expense (73) (68) (5)
Interest capitalized 10 7 3
Net financing expense relating to employee benefits (53) (72) 19
Gain on financial instruments recorded at fair value 22 7 15
Other (2) 1 (3)
Total non-operating expense (141) (107) (34)
Loss before income taxes and discontinued operations (6) (60) 54
Income taxes – – –
Net loss $(6) $ (60) $54
Adjusted net income (loss)(2) $ 3 $ (5) $8
EBITDAR, excluding benefit plan amendments(1)(3) $ 277 $ 283 $(6)
EBITDAR(3) $ 359 $ 283 $76
Basic and diluted loss per share $ (0.02) $ (0.22) $ 0.20
Adjusted net income (loss) per share –diluted $ 0.01 $ (0.02) $ 0.03
(1) In the fourth quarter of 2013, Air Canada recorded an operating expense reduction of $82 million related to amendments to defined benefit pension plans.
(2) Adjusted net income (loss) and adjusted net income (loss) per share – diluted are non-GAAP financial measures. Refer to section 20 “Non-GAAP Financial Measures” of this
MD&A for additional information.
(3) EBITDAR (earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent) is a non-GAAP financial measure. Refer to section 20 "Non-GAAP
Financial Measures" of this MD&A for additional information.