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
Michael Maximilien, better known as max or Dr. Max, is a computer scientist with IBM. At IBM Research Triangle Park, he was a principal engineer for the worldwide industry point-of-sale standard: JavaPOS. At IBM Research, some highlights include pioneering research on semantic Web services, mashups, and cloud computing, and platform-as-a-service. He joined the IBM Cloud Labs in 2014 and works closely with Pivotal Inc., to help make the Cloud Found the best PaaS.
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: implemen...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
In a world where the internet rules all, where 94% of business buyers conduct online research, and where e-commerce sales are poised to fall between $427 billion and $443 billion by the end of this year, we think it's safe to say that your website is a vital part of your business strategy. Whether you're a B2B company, a local business, or an e-commerce site, digital presence is key to maintain in your drive towards success. Digital Performance will take priority in 2018 for the following reason...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, provided a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services with...
"This week we're really focusing on scalability, asset preservation and how do you back up to the cloud and in the cloud with object storage, which is really a new way of attacking dealing with your file, your blocked data, where you put it and how you access it," stated Jeff Greenwald, Senior Director of Market Development at HGST, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discussed how a new approach is neces...
What's the role of an IT self-service portal when you get to continuous delivery and Infrastructure as Code? This general session showed how to create the continuous delivery culture and eight accelerators for leading the change. Don Demcsak is a DevOps and Cloud Native Modernization Principal for Dell EMC based out of New Jersey. He is a former, long time, Microsoft Most Valuable Professional, specializing in building and architecting Application Delivery Pipelines for hybrid legacy, and cloud ...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"We view the cloud not as a specific technology but as a way of doing business and that way of doing business is transforming the way software, infrastructure and services are being delivered to business," explained Matthew Rosen, CEO and Director at Fusion, in this SYS-CON.tv interview at 18th Cloud Expo (http://www.CloudComputingExpo.com), held June 7-9 at the Javits Center in New York City, NY.