Air Canada 2014 Annual Report Download - page 38

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38 2014 Annual Report
Components of the year-over-year change in fourth quarter Other passenger revenues included:
• The overall 3.0% traffic increase which reflected traffic growth on routes to Mexico and to traditional sun
destinations largely offset by a traffic decrease on services to South America where capacity was reduced
year-over-year.
• The overall 2.7% yield decrease which reflected a decline on routes to South America and to traditional sun
destinations partly offset by yield growth on routes to Mexico. South American yields were impacted by
the airline’s suspension of service to Venezuela while routes to traditional sun destinations were affected by
increased industry capacity and aggressive pricing activities.
The overall 3.4% PRASM decrease was due to the lower yield and, to a lesser extent, a passenger load factor
decline of 0.6 percentage points.
CARGO REVENUES INCREASED 3.9% FROM THE FOURTH QUARTER OF 2013
In the fourth quarter of 2014, cargo revenues of $133 million increased $5 million or 3.9% from the fourth
quarter of 2013 due to traffic growth of 7.5% partly offset by a yield decline of 3.3% year-over-year.
The table below provides cargo 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
CARGO REVENUE
Canada 17 16 1
U.S. transborder 5 5 -
Atlantic 48 46 2
Pacific 51 50 1
Other 12 11 1
SYSTEM 133 128 5
The table below provides year-over-year percentage changes in system cargo 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
Cargo revenues 1.6 7.0 6.6 6.5 3.9
Capacity (ETMs) 3.5 4.1 8.2 9.6 11.6
Revenue per ETM (2.2) 2.8 (1.5) (3.0) (6.9)
Traffic (RTMs) 4.3 6.4 11.3 6.9 7.5
Yield per RTM (2.9) 0.5 (4.3) (0.5) (3.3)