Air Canada 2014 Annual Report Download - page 27

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27
2014 Management’s Discussion and Analysis
CARGO REVENUES INCREASED 5.9% FROM 2013
In 2014, cargo revenues of $502 million increased $28 million or 5.9% from 2013 due to traffic growth of 8.0%
partly offset by a yield decline of 1.9%.
The table below provides cargo revenue by geographic region for 2014 and 2013.
2014
$ MILLION
2013
$ MILLION
CHANGE
$ MILLION
CARGO REVENUE
Canada 66 63 3
U.S. transborder 20 18 2
Atlantic 191 171 20
Pacific 190 185 5
Other 35 37 (2)
SYSTEM 502 474 28
The table below provides year-over-year percentage changes in cargo revenues and operating statistics for 2014
versus 2013.
CARGO
REVENUE
% CHANGE
CAPACITY
(ETMS)
% CHANGE
REV / ETM
% CHANGE
TRAFFIC
(RTMS)
% CHANGE
YIELD / RTM
% CHANGE
FULL YEAR 2014 VERSUS FULL YEAR 2013
Canada 5.6 21.0 (12.8) 32.3 (20.2)
U.S. transborder 11.7 25.1 (10.7) 13.6 (1.7)
Atlantic 11.8 10.6 1.1 16.2 (3.8)
Pacific 2.1 0.7 1.4 (0.5) 2.6
Other (4.3) 1.3 (5.5) (4.1) (0.2)
SYSTEM 5.9 8.5 (2.4) 8.0 (1.9)
Components of the year-over-year change in cargo revenues included:
• The 8.0% traffic increase which reflected traffic growth in all markets with the exception of the Pacific
and Other markets. The overall traffic growth reflected more favourable economic conditions in the
U.S. and Europe.
• The 1.9% overall yield decrease which reflected increased industry capacity and aggressive competitive
pricing activities when compared to 2013. These yield decreases were partly offset by yield growth in the
Pacific market and a favourable currency impact.
OTHER REVENUES INCREASED 9% FROM 2013
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 2014, Other revenues of $966 million increased $79 million or 9% from 2013 mainly
due to higher ground package revenues at Air Canada Vacations, the result of higher passenger volumes, as well
as growth in passenger-related fees.