Travel Best Jobs

Air Canada by the numbers

Air Canada has reported operating income of $179 million for 2011, compared to operating income (before a net reduction of $46 million to a provision for cargo investigations) of $232 million in 2010 — a decrease of $53 million. Adjusted net loss per diluted share was $0.72 in 2011 compared to an adjusted net loss per diluted share of $0.58 in 2010. During the fourth quarter of 2011, Air Canada recorded an operating loss of $98 million compared to operating income (before the net reduction to the provision for cargo investigations) of $15 million in the fourth quarter of 2010, a decrease of $113 million. The carrier recorded earnings before interest, taxes, depreciation, amortization and impairment, and aircraft rent (“EBITDAR”) of $162 million in the fourth quarter of 2011 compared to EBITDAR (before the net reduction to the provision for cargo investigations) of $328 million in the fourth quarter of 2010, a decrease of $166 million. Commenting on the results, Air Canada’s president and CEO, Calin Rovinescu said: “Despite the challenges of 2011, I am pleased to report solid progress advancing the Corporation’s stated priorities during the year. “Our focus on revenue generation initiatives resulted in 8% growth or an increase of $826 million from the previous year and a record revenue performance for the airline, which helped mitigate a fuel expense increase of $723 million.” He continued: “The Cost Transformation Program surpassed its target in annualized revenue gains and cost savings of $530 million, on a run-rate basis, by the end of the third quarter. On-going disciplined capacity management resulted in the second-highest annual load factor in the company’s history of 81.6 per cent. Our focus on growing international connecting traffic via our Canadian hubs is paying off, particularly at Toronto Pearson where it has increased by 110 per cent since 2009.” Rovinescu noted as well that “cost transformation and revenue optimization remain important priorities going forward to support ongoing unit cost reductions and a number of significant business transformation projects are currently being executed.” Air Canada’s boss also said that: “Given the current economic environment, we will continue to manage capacity conservatively and are planning for system ASM capacity growth of no more than 1.5 per cent in 2012. We view participation in the low-cost segment of the leisure market as important for the Corporation, and we are evaluating various models that would allow us to participate in this market segment.” AC on the labour front In announcing its full year and fourth quarter results, Air Canada also offered an update on its labour negotiations. Noting that since March 18, 2011 when its pilots rejected a tentative agreement reached between Air Canada and ACPA, the union representing Air Canada’s pilots, the carrier has recommenced negotiations with ACPA, and while the conciliation timetable is set to expire on Feb. 14, 2012, negotiations are scheduled to continue beyond that date with the assistance of a federally-appointed mediator. Air Canada also said that discussions are on-going with the IAMAW representing the airline’s mechanics, baggage handlers and cargo agents assisted by a federally-appointed conciliator. The company is in discussions with CALDA representing the airline’s 74 flight dispatchers following rejection, in a ratification vote, of a tentative agreement reached on Aug. 19, 2011. The airline is also in discussions with CAW Local 2002 representing the company’s 120 crew schedulers. In 2011, new collective agreements were concluded with the CAW representing Air Canada’s call centre and airport customer service agents, CUPE representing the airline’s flight attendants and UNITE representing its customer service, aircraft services, cargo and clerical staff in the United Kingdom. AC talks Q1 Air Canada also commented on the current outlook for the first quarter of 2012, indicating that it plans to increase its system ASM capacity, as measured by available seat miles (ASMs), by 2.5% to 3.5% compared to the first quarter of 2011. Adding that it expects its full year 2012 system capacity to increase in the range of 0% to 1.5% when compared to the full year 2011 and its full year 2012 domestic capacity to increase in the range of 0% to 1.5% per cent from the full year 2011. Also in the first quarter of 2012, AC said it expects CASM, excluding fuel expense and the cost of ground packages at Air Canada Vacations, to increase by 4% to 5% from the first quarter of 2011, largely reflecting a projected increase in aircraft maintenance expense. Air Canada expects its full year 2012 CASM, excluding fuel expense and excluding the cost of ground packages at Air Canada Vacations, to increase by 1% to 2% from the full year 2011 level. The carrier pointed out that this outlook assumes that the Canadian economy will continue to recover and assumes Canadian GDP growth of 1.5% to 2.0% in 2012. In addition, AC expects that the Canadian dollar will trade, on average, at C$1.01 per U.S. dollar in the first quarter of 2012 and C$1.00 per U.S. dollar for the full year 2012 and that the price of jet fuel will average 88 cents per litre for the first quarter of 2012 and 87 cents per litre for the full year 2012.

Posted in Airlines, News

 

 

Categories