Air Canada 2014 Annual Report Download - page 39

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39
2014 Management’s Discussion and Analysis
The table below provides year-over-year percentage changes in cargo revenues and operating statistics for the
fourth quarter of 2014 versus the fourth quarter of 2013.
CARGO
REVENUE
% CHANGE
CAPACITY
(ETMS)
% CHANGE
REV / ETM
% CHANGE
TRAFFIC
(RTMS)
% CHANGE
YIELD / RTM
% CHANGE
FOURTH QUARTER 2014 VERSUS FOURTH QUARTER 2013
Canada 9.8 24.3 (11.6) 38.8 (20.9)
U.S. transborder 9.7 39.3 (21.2) 19.9 (8.5)
Atlantic 5.6 8 .1 (2.3) 15.3 (8.4)
Pacific (1.2) 5.8 (6.6) (5.3) 4.3
Other 9.0 12.4 (3.1) 11.8 (2.5)
SYSTEM 3.9 11.6 (6.9) 7.5 (3.3)
Components of the year-over-year change in fourth quarter cargo revenues included:
• The 7.5% traffic increase which reflected traffic growth in all markets with the exception of the Pacific market
which was impacted by load restrictions on certain key routes such as Sydney and Hong Kong. The overall growth in
traffic was mainly due to increased capacity, market share gains and strong demand from North America to Europe.
• The 3.3% yield decrease which reflected yield declines in all markets with the exception of the Pacific
market. The overall yield decline was due to the impact of increased industry capacity and aggressive
competitive pricing activities. The deployment of additional wide-body aircraft on transcontinental routes
has allowed the airline to increase cargo revenues by carrying a new mix of traffic and larger shipments at
a lower yield. The yield decrease was partly offset by the favourable impact of a weaker Canadian dollar on
foreign currency denominated cargo revenues and strong demand out of Asia which enabled price increases.
OTHER REVENUES INCREASED 5% FROM THE FOURTH QUARTER OF 2013
In the fourth quarter of 2014, Other revenues of $216 million increased $10 million or 5% from the fourth
quarter of 2013 mainly due to growth in passenger-related fees and higher ground package revenues at
Air Canada Vacations, the result of higher passenger volumes.