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%


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%


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%


 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%


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%


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.


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
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit at the 19th International Cloud Expo®, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
So you think you are a DevOps warrior, huh? Put your money (not really, it’s free) where your metrics are and prove it by taking The Ultimate DevOps Geek Quiz Challenge, sponsored by DevOps Summit. Battle through the set of tough questions created by industry thought leaders to earn your bragging rights and win some cool prizes.
Between the mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at @DevOpsSummit at 19th Cloud Expo, Charles Kendrick, CTO at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how business and deve...
Enterprises have been using both Big Data and virtualization for years. Until recently, however, most enterprises have not combined the two. Big Data's demands for higher levels of performance, the ability to control quality-of-service (QoS), and the ability to adhere to SLAs have kept it on bare metal, apart from the modern data center cloud. With recent technology innovations, we've seen the advantages of bare metal erode to such a degree that the enhanced flexibility and reduced costs that cl...
SYS-CON Events announced today that Niagara Networks will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, will provide economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session will also include a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue an...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Intelligent machines are here. Robots, self-driving cars, drones, bots and many IoT devices are becoming smarter with Machine Learning. In her session at @ThingsExpo, Sudha Jamthe, CEO of IoTDisruptions.com, will discuss the next wave of business disruption at the junction of IoT and AI, impacting many industries and set to change our lives, work and world as we know it.
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...