Air Canada 2014 Annual Report Download - page 36

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36 2014 Annual Report
ATLANTIC PASSENGER REVENUES INCREASED 13.6% FROM THE
FOURTH QUARTER OF 2013
In the fourth quarter of 2014, on capacity growth of 8.7%, Atlantic passenger revenues of $525 million
increased $63 million or 13.6% from the fourth quarter of 2013. The increase in Atlantic passenger revenues
was due to traffic growth of 12.8% and, to a lesser extent, a yield improvement of 0.8%.
The table below provides year-over-year percentage changes in Atlantic 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
ATLANTIC
Passenger revenues 2.7 8.3 12.3 14.9 13.6
Capacity (ASMs) 5.9 7.6 16.2 20.2 8.7
Traffic (RPMs) 1.7 1.2 14.7 19.2 12.8
Passenger load factor (pp change) (3.1) (4.5) (1.1) (0.8) 2.9
Yield 0.7 7.1 (2.0) (3.5) 0.8
PRASM (3.2) 0.7 (3.3) (4.4) 4.7
In the fourth quarter of 2014, the Atlantic capacity growth of 8.7% reflected capacity increases on all major
Atlantic services.
Components of the year-over-year change in fourth quarter Atlantic passenger revenues included:
• The 12.8% traffic increase which reflected traffic growth on all major Atlantic services, including traffic
growth between the U.S. and Europe via the airline’s major Canadian hubs, in line with Air Canada’s
international growth strategy.
• The 0.8% yield growth which reflected improvements in Air Canada’s business cabin revenue performance,
an increase in premium economy traffic which resulted in higher average fares, and a favourable currency
impact of $10 million. This yield growth was largely offset by the impact of having a higher proportion
of seats in long-haul leisure markets due to additional Atlantic services being served with lower-cost
Boeing 777 higher-density aircraft which have a larger economy cabin, and new and increased lower-cost
leisure flying by Air Canada rouge which offers a Premium rouge product but has no international business
cabin. The yield growth was also achieved despite an increase in average stage length which reduced
Atlantic yield by 0.4 percentage points.
The 4.7% PRASM growth was mainly due to a passenger load factor improvement of 2.9 percentage points and,
to a lesser extent, the yield growth.
PACIFIC PASSENGER REVENUES INCREASED 6.5% FROM THE
FOURTH QUARTER OF 2013
In the fourth quarter of 2014, on capacity growth of 9.5%, Pacific passenger revenues of $377 million increased
$24 million or 6.5% from the fourth quarter of 2013. The increase in Pacific passenger revenues was due to
traffic growth of 7.6% partly offset by a yield decline of 0.8%.