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Air Canada operating loss widens in 1Q2013, sees improvements in 2Q; yield remains 'challenging'

6-May-2013 2:05 PM

Air Canada revenue down 9% – financial highlights for three months ended 31-Mar-2013:

  • Operating revenue: CAD2952 million (USD2929 million), -9% year-on-year;
    • Passenger: CAD2527 million (USD2507 million), stable;
    • Cargo: CAD111 million (USD110 million), -9%;
  • Operating costs: CAD3058 million (USD3034 million), stale;
    • Fuel: CAD870 million (USD863 million), -2%;
    • Labour: CAD564 million (USD560 million), +5%;
  • Operating profit (loss): (CAD106 million) (USD105 million), compared to a loss of CAD91 million (USD90 million) in p-c-p;
  • Net profit (loss): (CAD260 million) (USD258 million), compared to a loss of CAD274 million (USD272 million) in p-c-p;
  • Passenger traffic (RPMs): +1.1%;
  • Passenger load factor: 81.0%, +1.8 ppt;
  • Passenger yield: CAD 19.0 (USD 18.9 cents), -1.1%;
  • Passenger revenue per ASM: CAD 15.4 cents (USD 15.3 cents), +1.1%;
  • Operating revenue per ASM: CAD 18.3 cents (USD 18.2 cents), +0.8%;
  • Operating cost per ASM: CAD 18.9 cents (USD 18.8 cents), +1.3%;
  • Total assets: CAD9021 million (USD8950 million), +2.0% when compared to period ended 31-Dec-2012;
  • Cash, cash equivalents and short-term investments: CAD2056 million (USD2040 million), +4.2% when compared to period ended 31-Dec-2012;
  • Total liabilities: CAD12,511 million (USD12,413 million), +2.6% when compared to period ended 31-Dec-2012;
  • 2Q2013 forecast:
    • Capacity (ASMs): +2.0% to +3.0%;
  • FY2013 forecast:

Air Canada: "While the first quarter's loss was narrowed compared to the previous year, the quarter fell short of our expectations, in part due to a decline in premium travel demand. We are encouraged to see an improvement in second quarter economy and premium class cabin booking trends which are running above last year's levels, although the yield environment remains challenging.” Calin Rovinescu, President and CEO. Source: Air Canada, 03-May-2013.