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3232 2014 Annual Report
7. RESULTS OF OPERATIONS – FOURTH QUARTER 2014
VERSUS FOURTH QUARTER 2013
The following table and discussion compares results of Air Canada for the fourth quarter 2014 versus the fourth
quarter of 2013.
CANADIAN DOLLARS IN MILLIONS,
EXCEPT PER SHARE FIGURES
FOURTH QUARTER CHANGE
2014 2013 $ %
OPERATING REVENUES
Passenger $ 2,755 $ 2,560 $ 195 8
Cargo 133 128 5 4
Other 216 206 10 5
TOTAL REVENUES 3,104 2,894 210 7
OPERATING EXPENSES
Aircraft fuel 791 831 (40) (5)
Wages, salaries and benefits (1) 604 553 51 9
Benefit plan amendments (2) - (82) 82 100
Capacity purchase agreements 295 280 15 5
Airport and navigation fees 247 232 15 6
Aircraft maintenance 201 158 43 27
Sales and distribution costs 153 138 15 11
Depreciation, amortization and impairment 134 148 (14) (9)
Ground package costs 74 66 8 12
Aircraft rent 79 76 3 4
Food, beverages and supplies 74 71 3 4
Communications and information technology 52 45 7 16
Other 294 243 51 21
TOTAL OPERATING EXPENSES 2,998 2,759 239 9
OPERATING INCOME 106 135 (29)
NON-OPERATING INCOME (EXPENSE)
Foreign exchange loss (115) (55) (60)
Interest income 10 10 -
Interest expense (83) (73) (10)
Interest capitalized 9 10 (1)
Net financing expense relating to employee benefits (32) (53) 21
Fuel and other derivatives 9 22 (13)
Other (4) (2) (2)
TOTAL NON-OPERATING EXPENSE (206) (141) (65)
LOSS BEFORE INCOME TAXES (100) (6) (94)
Income taxes - - -
NET LOSS $ (100) $ (6) $ (94)
NET LOSS PER SHARE – DILUTED $ (0.35) $ (0.02) $ (0.33)
EBITDAR, EXCLUDING THE IMPACT OF BENEFIT
PLAN AMENDMENTS (2)(3) $ 319 $ 277 $ 42
EBITDAR (3) $ 319 $ 359 $ (40)
ADJUSTED NET INCOME (4) $ 67 $ 3 $ 64
ADJUSTED NET INCOME PER SHARE – DILUTED (4) $ 0.23 $ 0.01 $ 0.22
1 In the fourth quarter of 2014, one-time payments totaling $30 million were made to ACPA members under a collective agreement concluded in October 2014.
2 In the fourth quarter of 2013, Air Canada recorded an operating expense reduction of $82 million related to amendments to defined benefit pension plans.
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.
4 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.