Air Canada losses widens in 1Q2012

Air Canada revenue up 8% - financial highlights for three months ended 31-Mar-2012:

• Operating revenue: CAD2962 million (USD2956 million), +7.6% year-on-year;
• Operating costs: CAD3055 million (USD3049 million), +8.4%;
  • Fuel: CAD889 million (USD887 million), +19.8%;
  • Labour: CAD536 million (USD534.9 million), +5.9%;
• Operating profit (loss): (CAD93 million) (USD92.8 million), compared to a loss of CAD66 million (USD65.9 million) in p-c-p;
• Net profit (loss): (CAD211 million) (USD210.6 million), compared to a loss of CAD19 million (USD19.0 million) in p-c-p;
• Passenger traffic (RPMs): +4.8%;
• Passenger load factor: 79.2%, +1.3 ppt;
• Passenger yield: CAD 19.2 cents, (USD 19.16 cents), +3.3%;
• Passenger revenue per ASM: CAD 15.2 cents (USD 15.17 cents), +5.0%;
• Operating revenue per ASM: CAD 18.1 cents (USD 18.06 cents), +4.4%;
• Operating costs per ASM: CAD 18.7 cents (USD 18.66 cents), +5.2%;
• Cost per ASM excl fuel and cost of ground packages at Air Canada Vacations: CAD 12.3 cents (USD 12.28 cents), +1.0%;
• Fleet: 330 aircraft, +0.6%;
• Average aircraft flight length: 892 miles, +0.2%;
• Total assets: CAD9556 million (USD9537 million), -0.8% when compared to period ended 31-Dec-2011;
• Cash and cash equivalents: CAD774 million (USD772.5 million), -8.7% when compared to period ended 31-Dec-2011;
• Total liabilities: CAD13,721 million (USD13,694 million), +0.6% when compared to period ended 31-Dec-2011;
• 2Q2012 forecast:
  • Capacity (ASMs): stable to +1.0% year-on-year;
  • Cost per ASM excl fuel and cost of ground packages at Air Canada Vacations: +4.0% to +5.0%;
• FY2012 forecast:
  • Capacity: stable to +1.5%;
  • Cost per ASM excl fuel and cost of ground packages at Air Canada Vacations: +0.5% to +1.5%. [more - original PR]

*Based on the average conversion rate at USD1 = CAD1.002 for the period

Air Canada: "The quarter was marked by a challenging environment, with persistently high fuel prices and volatility which resulted in a significant increase in fuel expense of CAD147 million, or 20%, from the previous year's quarter. In addition, our operations were disrupted by job action by a number of unionised employees, which resulted in a decline in bookings for travel originating in Canada in the immediate aftermath of these incidents. Since then, we have seen an improvement in advance booking trends. We remained focused on maintaining strong liquidity levels and the on-going implementation of cost reduction initiatives, primarily through improved business processes," Calin Rovinescu, president and CEO. Source: Air Canada, 04-May-2012.