Air Canada 2013 Annual Report Download - page 36

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2013 Air Canada Annual Report
36
Other revenues increased 3% from the fourth quarter of 2012
In the fourth quarter of 2013, Other revenues of $206 million increased $6 million or 3% from the fourth quarter of 2012,
mainly due to higher ground package revenues at Air Canada Vacations and an increase in passenger and airline-related fees.
These increases were largely offset by a decrease in aircraft sublease revenues, in part due to the expiry of certain Airbus A340
subleases, when compared to the fourth quarter of 2012.
CASM (excluding benefit plan amendments) decreased 1.8% from the fourth quarter of 2012. Adjusted CASM
decreased 2.3% from the fourth quarter of 2012
The following table compares Air Canada’s fourth quarter 2013 and fourth quarter 2012 CASM.
Fourth Quarter Change
(cents per ASM) 2013 2012 cents %
Aircraft fuel 5.18 5.30 (0.12) (2.3)
Wages and salaries 2.68 2.70 (0.02) (0.7)
Benefits 0.76 0.71 0.05 7.0
Benefit plan amendments(1) (0.51) – (0.51) –
Capacity purchase agreements 1.74 1.70 0.04 2.4
Airport and navigation fees 1.45 1.49 (0.04) (2.7)
Aircraft maintenance 0.99 1.04 (0.05) (4.8)
Sales and distribution costs 0.86 0.86 – –
Depreciation, amortization and impairment 0.92 1.00 (0.08) (8.0)
Aircraft rent 0.48 0.52 (0.04) (7.7)
Food, beverages and supplies 0.44 0.44 – –
Communications and information technology 0.28 0.30 (0.02) (6.7)
Other 1.94 1.98 (0.04) (2.0)
CASM 17.21 18.04 (0.83) (4.6)
Remove:
Benefit plan amendments(1) (0.51) – (0.51) –
CASM (excluding benefit plan amendments) 17.72 18.04 (0.32) (1.8)
(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.
CASM 17.21 18.04 (0.83) (4.6)
Remove:
Fuel expense, the cost of ground packages at Air Canada Vacations,
benefit plan amendments and impairment charges (5.12) (5.67) 0.55 (9.7)
Adjusted CASM(1) 12.09 12.37 (0.28) (2.3)
(1) Adjusted CASM is a non-GAAP financial measure. Refer to section 20“Non-GAAP Financial Measures” of this MD&A for additional information.
Operating expenses decreased 1% from the fourth quarter of 2012
In the fourth quarter of 2013, operating expenses of $2,759 million decreased $33 million or 1% from the fourth quarter of
2012, mainly reflecting the impact of an operating expense reduction of $82 million in benefit plan amendments and lower jet
fuel prices year-over-year. Largely offsetting these decreases was the result of an unfavourable impact of a weaker Canadian
dollar on foreign currency denominated operating expenses (mainly U.S. dollars), when compared to the fourth quarter of
2012, which increased operating expenses by $75 million in the fourth quarter of 2012. Higher fourth quarter 2013 wages,
salaries and benefits expenses also served to offset the decrease in operating expenses.