Air Canada remains in the red on high fuel costs

Air Canada revenue up 9% - financial highlights for the three months ended 31-Mar-2011:

• Operating revenue: USD2850 million, +9.3% year-on-year;
• Operating costs: USD2918 million, +6%;
  • Fuel: USD768.1 million, +20%;
  • Labour: USD523.8 million, +7%;
• Operating profit (loss): (USD68.3 million), compared to a loss of USD140.8 million in p-c-p;
• Net profit (loss): (USD19.7 million), compared to a loss of USD115.9 million in p-c-p;
• Passenger traffic (RPMs): +5.7%;
• Passenger load factor: 77.9%, -1.5 ppt;
• Passenger yield: USD 19.25 cents, +4.2%;
• Passenger revenue per ASM: USD 15.01 cents, +2.2%;
• Revenue per ASM: USD 18.01 cents, +1.5%;
• Operating cost per ASM: USD 18.43 cents, -1.4%;
• Cost per ASM excl fuel: USD 13.56 cents, -5.3%;
• Total assets: USD10,358 million, -1.4% when compared to period ended 31-Dec-2010;
• Cash and cash equivalents: USD2188 million, -3.6%;
• Total liabilities: USD11,746 million, -0.8% when compared to period ended 31-Dec-2010;
• 2Q2011 forecast:
  • Capacity (ASMs): +5.5% to +6.5% year-on-year;
  • Cost per ASM excl fuel: -0.5% to -1.5%;
• FY2011 forecast:
  • Capacity (ASMs): +3.5% to +4.5%;
  • Cost per ASM excl fuel: -2.0%. [more]

* Based on the conversion rate CAD1 = USD1.03516

Air Canada: "In the quarter, we incurred over CAD120 million in additional fuel expense from the same quarter last year. Based on expected jet fuel prices and system capacity, we estimate that these higher fuel prices will add approximately CAD800 million to our operating costs in 2011," Calin Rovinescu, President and CEO. Source: Air Canada, 05-May-2011.