Welcome!

News Feed Item

Air Canada Reports March Traffic Results and Provides Updates for the First Quarter and Full Year 2014

MONTREAL, April 3, 2014 /CNW Telbec/ - For the month of March, Air Canada reported a system wide traffic growth of 1.4 per cent on a capacity increase of 3.6 per cent. Air Canada's system load factor was 81.7 per cent, versus 83.5 per cent in March 2013, a decrease of 1.8 percentage points. Air Canada reports traffic results on a system-wide basis, including Air Canada rougeTM, which began operations on July 1, 2013, and regional airlines from which Air Canada purchases capacity.

"I am pleased to report solid traffic growth and a load factor of 81.7 per cent for the month of March," said Calin Rovinescu, President and Chief Executive Officer.  "For the month, traffic grew overall by 1.4 per cent led by the U.S. transborder market, and for the quarter traffic grew 2.9 per cent with increases in all markets Air Canada serves.  During the first quarter, we continued to execute our priorities to build a sustainably profitable airline. Based on the ongoing positive results of our cost transformation and revenue enhancement initiatives, we now expect EBITDAR for the first quarter to be in line with last year's level for the same period. In addition, based on forward bookings, we expect a strong summer travel season ahead. I would like to thank our employees for their hard work and transporting our customers safely to their destinations despite the ongoing challenges of severe winter weather during the month and the quarter."

Updated Outlook

Further to the initial projections regarding the first quarter EBITDAR provided by Air Canada in its February 12, 2014 press release, Air Canada now expects its first quarter 2014 EBITDAR to be in line with last year's level.  The expected improvement in the first quarter 2014 EBITDAR (compared to the $15-$30 million shortfall to last year's level projected in the February 12, 2014 press release) is the result of both higher revenue and RASM performance, as well as a better CASM performance than originally projected.

For the first quarter of 2014, based on preliminary results, Air Canada reported system ASM capacity growth of 3.8 percent, compared to the first quarter of 2013, which was at the lower end of the range of the 3.5 to 4.5 percent increase projected in its February 12, 2014 press release.  Air Canada now projects full year 2014 ASM capacity growth of 6.5 to 8.0 percent when compared to the full year 2013 (as compared to 7 to 9 percent growth projected in its February 12, 2014 press release).  Domestic Canada ASM growth for 2014 is now projected at between 3.0 and 4.0 percent (as compared to 3.5 to 4.5 percent growth projected in Air Canada's February 12, 2014 press release).  The projected reduction in both annual system and domestic ASM growth is the result of various minor network adjustments.

In the first quarter of 2014, Air Canada now expects adjusted CASM to have decreased in the range of 2.0 to 2.5 percent when compared to the first quarter of 2013 (as opposed to the 1.0 to 2.0 percent decrease projected in its February 12, 2014 press release).  This projected improvement in adjusted CASM results from various additional cost reduction initiatives executed in the quarter designed to mitigate the impact of the Canadian dollar and severe weather conditions.  For the full year 2014, Air Canada continues to expect adjusted CASM to decrease 2.5 to 3.5 percent when compared to the full year 2013.

Air Canada's outlook assumes Canadian GDP growth of 2.0 to 3.0 per cent for 2014. Air Canada's outlook also assumes that the Canadian dollar will trade, on average at $1.10 per U.S. dollar in the first quarter of 2014 and $1.11 per U.S. dollar for the full year 2014 and that the price of jet fuel will average 95 cents per litre for the first quarter of 2014 and 91 cents per litre for the full year 2014.

All financial figures reported with respect to the first quarter of 2014 are preliminary estimates only, have not been reviewed by Air Canada's auditors and are subject to change as Air Canada's first quarter 2014 financial results are finalized.  The outlook and preliminary estimates provided in this press release constitute forward-looking statements within the meaning of applicable securities laws, are based on a number of assumptions and are subject to a number of risks and uncertainties.  Please see section below entitled 'Caution regarding Forward Looking Information.'

  March Q1
  2014 2013 Change 2014 2013 Change
Traffic (RPMs mln) 4,843 4,776 +1.4% 13,465  13,087 +2.9%
Capacity (ASMs mln) 5,926 5,722 +3.6% 16,773 16,164 +3.8%
Load Factor 81.7% 83.5% -1.8 pts 80.3% 81.0% -0.7 pts
               
Canada RPMs 1,297 1,275 +1.7% 3,664 3,604 +1.7%

ASMs

1,569 1,523 +3.0% 4,564 4,392 +3.9%
LF 82.7% 83.7% -1.0 pts 80.3% 82.1% -1.8 pts
               
US Transborder RPMs 1,008 965 +4.5% 2,710 2,563 +5.7%

ASMs

1,202 1,178 +2.0% 3,310 3,248 +1.9%
LF 83.9% 81.9%  +2.0 pts 81.9% 78.9% +3.0 pts
               
Atlantic RPMs 970 984 -1.4% 2,507  2,476 +1.3%

ASMs

 1,305 1,189 +9.8% 3,485 3,238   +7.6%
LF 74.3%  82.8% -8.5 pts   71.9%  76.5% -4.6 pts
               
Pacific RPMs 971 955  +1.7% 2,841  2,752  +3.2%

ASMs

1,152 1,093 +5.4%  3,366 3,218 +4.6%
LF 84.3% 87.4% -3.1 pts  84.4%  85.5% -1.1 pts
               
Latin America & Caribbean RPMs 597 597 0.0% 1,743  1,692  +3.0%

ASMs

698 739 -5.5% 2,048 2,068 -1.0%
LF   85.5% 80.8% +4.7 pts 85.1% 81.8% +3.3 pts

About Air Canada

Air Canada is Canada's largest domestic and international airline serving more than 180 destinations on five continents.  Canada's flag carrier is among the 20 largest airlines in the world and in 2013 served more than 35 million customers.  Air Canada provides scheduled passenger service directly to 60 Canadian cities, 49 destinations in the United States and 72 cities in Europe, the Middle East, Asia, Australia, the Caribbean, Mexico and South America. Air Canada is a founding member of Star Alliance, the world's most comprehensive air transportation network serving 1,269 destinations in 193 countries.  Air Canada is the only international network carrier in North America to receive a Four-Star ranking according to independent U.K. research firm Skytrax that ranked Air Canada in a worldwide survey of more than 18 million airline passengers as Best Airline in North America in 2013 for the fourth consecutive year.  For more information, please visit: www.aircanada.com.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

This press release includes forward-looking statements within the meaning of applicable securities laws. Forward-looking statements relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable.  These statements may involve, but are not limited to, comments relating to preliminary results, guidance, strategies, expectations, planned operations or future actions.  Forward-looking statements are identified by the use of terms and phrases such as "preliminary", "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions.

Forward-looking statements, by their nature, are based on assumptions, including those described herein and are subject to important risks and uncertainties.  Forward-looking statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business.  Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including without limitation, industry, market, credit and economic conditions, the ability to reduce operating costs and secure financing, energy prices, currency exchange and interest rates, competition, employee and labour relations, pension issues, war, terrorist acts, epidemic diseases, environmental factors (including weather systems and other natural phenomena and factors arising from man-made sources), insurance issues and costs, changes in demand due to the seasonal nature of the business, supply issues, changes in laws, regulatory developments or proceedings, pending and future litigation and actions by third parties as well as the factors identified throughout this press release and those identified in section 18 "Risk Factors" of Air Canada's 2013 MD&A dated February 12, 2014.  The forward-looking statements contained in this press release represent Air Canada's expectations as of the date of this press release (or as of the date they are otherwise stated to be made), and are subject to change after such date.  However, Air Canada disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

SOURCE Air Canada

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Akana has announced the availability of version 8 of its API Management solution. The Akana Platform provides an end-to-end API Management solution for designing, implementing, securing, managing, monitoring, and publishing APIs. It is available as a SaaS platform, on-premises, and as a hybrid deployment. Version 8 introduces a lot of new functionality, all aimed at offering customers the richest API Management capabilities in a way that is easier than ever for API and app developers to use.
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.