Air Canada 2013 Annual Report Download - page 83
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2013 Management’s Discussion and Analysis
83
Revenue Passenger Miles or RPMs – Refers to a measure of passenger traffic calculated by multiplying the total number of
revenue passengers carried by the miles they are carried.
Revenue Ton Miles or RTMs – Refers to the mathematical product of weight in tons of a shipment being transported by the
number of miles that it is transported.
Yield – Refers to average passenger revenue per RPM (baggage fee revenues, which are included in passenger revenues, are
removed for the purposes of calculating yield).
Weighted average cost of capital or WACC – Refers to management’s estimate of its cost of capital, in which each category
of capital is proportionately weighted, and consists of an estimated cost of equity of 20% and an average cost of debt and
finance leases of 6%.