Air Canada 2014 Annual Report Download - page 33

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33
2014 Management’s Discussion and Analysis 33
2014 Management’s Discussion and Analysis
SYSTEM PASSENGER REVENUES INCREASED 7.6% FROM THE
FOURTH QUARTER OF 2013
In the fourth quarter of 2014, on capacity growth of 8.5%, system passenger revenues of $2,755 million increased
$195 million or 7.6% from the fourth quarter of 2013. The increase in system passenger revenues was due to
traffic growth of 9.4% partly offset by a yield decline of 1.9%. Modest yield declines are an anticipated and natural
consequence of the successful implementation of Air Canada’s business strategy to profitably increase long-haul
international and leisure flying.
In the fourth quarter of 2014, system business cabin revenues increased $28 million or 5.0% from 2013 due to a
yield improvement of 6.7% partly offset by a traffic decrease of 1.5%.
The table below provides passenger revenue by geographic region for the fourth quarter of 2014 and the fourth
quarter of 2013.
FOURTH QUARTER
2014
$ MILLION
FOURTH QUARTER
2013
$ MILLION
CHANGE
$ MILLION % CHANGE
PASSENGER REVENUE
Canada 1,099 1,040 59 5.7
U.S. transborder 572 523 49 9.5
Atlantic 525 462 63 13.6
Pacific 377 353 24 6.5
Other 182 182 -0.4
SYSTEM 2,755 2,560 195 7.6
The table below provides year-over-year percentage changes in passenger revenues and operating statistics for
the fourth quarter of 2014 versus the fourth quarter of 2013.
PASSENGER
REVENUE
% CHANGE
CAPACITY
(ASMS)
% CHANGE
TRAFFIC
(RPMS)
% CHANGE
PASSENGER
LOAD
FACTOR
PP CHANGE
YIELD
% CHANGE
PRASM
% CHANGE
FOURTH QUARTER 2014 VERSUS FOURTH QUARTER 2013
Canada 5.7 6.1 6.6 0.4 (1.8) (1.3)
U.S. transborder 9.5 14.0 15.5 1.1 (5.0) (3.7)
Atlantic 13.6 8.7 12.8 2.9 0.8 4.7
Pacific 6.5 9.5 7.6 (1.4) (0.8) (2.5)
Other 0.4 3.9 3.0 (0.6) (2.7) (3.4)
SYSTEM 7.6 8.5 9.4 0.6 (1.9) (1.2)
The table below provides year-over-year percentage changes in system passenger revenues and operating
statistics for the fourth quarter of 2014 and each of the previous four quarters.
YEAR-OVER-YEAR BY QUARTER (% CHANGE)
Q4’13 Q1’14 Q2’14 Q3’14 Q4’14
SYSTEM
Passenger revenues 1.9 3.2 7.5 9.4 7.6
Capacity (ASMs) 3.5 3.8 8.5 9.8 8.5
Traffic (RPMs) 2.5 2.9 9.9 11.0 9.4
Passenger load factor (pp change) (0.9) (0.7) 1.1 1.0 0.6
Yield (0.6) 0.4 (2.1) (1.3) (1.9)
PRASM (1.7) (0.5) (0.8) (0.2) (1.2)