Air Canada 2013 Annual Report Download - page 38
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2013 Air Canada Annual Report
38
Depreciation, amortization and impairment expense decreased 5% from the fourth quarter of 2012
In the fourth quarter of 2013, depreciation, amortization and impairment expense of $148 million decreased $7 million or 5%
from the fourth quarter of 2012, largely due to the impact of certain engine and airframe maintenance events becoming fully
amortized, the disposal of CRJ-100 aircraft (previously leased to and operated by Jazz), and a decrease in depreciation expense
related to the airline’s interior refurbishment programs.
Aircraft rent expense decreased 6% from the fourth quarter of 2012
In the fourth quarter of 2013, aircraft rent expense of $76 million decreased $5 million or 6% from the fourth quarter of 2012.
The decrease in aircraft rent expense was mainly due to more favourable rates on lease renewals and aircraft lease
terminations (in respect of aircraft not operated by Air Canada).
Other operating expenses increased 2% from the fourth quarter of 2012
In the fourth quarter of 2013, Other operating expenses of $309 million increased $5 million or 2% from the fourth quarter of
2012.
The following table provides a breakdown of the more significant items included in Other expenses:
Fourth Quarter Change
(Canadian dollars in millions) 2013 2012 $ %
Air Canada Vacations' land costs $66 $57 $ 9 16
Terminal handling 48 42 6 14
Building rent and maintenance 34 32 2 6
Crew cycle 30 29 1 3
Miscellaneous fees and services 28 33 (5) (15)
Remaining other expenses 103 111 (8) (7)
Other operating expenses $309 $304 $ 5 2
Non-operating expense amounted to $141 million in the fourth quarter of 2013 compared to non-operating
expense of $107 million in the fourth quarter of 2012
The following table provides a breakdown of Non-operating expense for the periods indicated:
Fourth Quarter Change
(Canadian dollars in millions) 2013 2012 $
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)