Air Canada revenue up 12.7%, profitable in 2Q2010

Air Canada revenue up 12.7% - consolidated financial highlights:

• Three months ended 30-Jun-2010:
  • Operating revenue: USD2,582 million, +12.7% year-on-year;
  • Operating costs: USD2,508 million, +4.4%;
    • Fuel: USD649.1 million, +15.4%;
    • Labour: USD466.2 million, +8.2%;
  • Operating profit: USD73.8 million, compared with a loss of USD111.1 million, in p-c-p;
  • Net profit (loss): USD199.7 million), compared with a profit of USD152.4 million in p-c-p;
  • Passenger traffic (RPMs): +8.7%;
  • Passenger load factor: 83.1%, +2.6 ppts;
  • Passenger yield: USD 17.61 cents, +3.3%;
  • Passenger revenue per ASM: USD 14.56 cents, +6.6%;
  • Operating revenue per ASM: USD 16.62 cents, +7.0%;
  • Operating cost per ASM: USD 16.13 cents, -0.9%;
  • Cost per ASM excl fuel: USD 12.00 cents, -4.2%;
  • Average stage length: 853 miles, +1.9%;
• Six months ended 30-Jun-2010:
  • Operating revenue: USD5,059 million, +9.0%;
  • Operating costs: USD5,109 million, +3.4%;
    • Fuel: USD1,258 million, +9.8%;
    • Labour: USD928.5 million, +5.4%;
  • Operating profit (loss): (USD50.2 million), compared with a loss of USD296.0 million in p-c-p;
  • Net profit (loss): (USD283.3 million), compared with a loss of USD241.0 million in p-c-p;
  • Cash and cash equivalents: USD1,785 million, +100.1%;
  • Free cash flow: USD503.6 million, compared with a negative cash flow of USD77.7 million in p-c-p;
  • Debt/equity ratio: 81.0%, -8.7 ppts;
  • Passenger traffic (RPMs): +7.6%;
  • Passenger load factor: 81.3%, +1.3 ppt;
  • Passenger yield: USD 17.61 cents, +0.6%;
  • Passenger revenue per ASM: USD 14.26 cents, +2.2%;
  • Operating revenue per ASM: USD 16.72 cents, +2.9%;
  • Operating cost per ASM: USD 16.92 cents, -2.3%;
  • Cost per ASM excl fuel: USD 12.69 cents, -4.2%;
  • Average stage length: 855 miles, +1.9%;
• 3Q2010 forecast:
  • Capacity (ASMs): +7% to +8%;
  • Cost per ASM excl fuel: -4.5% to -5.5%;
• FY2010 forecast:
  • Capacity: +6% to +7.5%;
  • Cost per ASM excl fuel: -3.5% to -4.5%. [more]

*Based on the conversion rate at USD1 = CAD1.01674

Air Canada: "Air Canada's outlook assumes that the North American economy will continue to slowly recover in 2010. In addition, Air Canada expects that the Canadian dollar will trade, on average, at CAD1.04 per USD in the third quarter of 2010 and for the full year 2010 and that the price of fuel will average 67 cents per litre in the third quarter of 2010 and 69 cents per litre for the full year 2010 (both net of fuel hedging positions)," Company statement. Source: Air Canada, 05-Aug-2010.