Air Canada Reports Narrowing of First Quarter Operating Loss

Air Canada Reports Narrowing of First Quarter Operating Loss

Air Canada has reported a first quarter operating loss of $66 million compared to an operating loss of $136 million in the first quarter of 2010, a $70 million improvement. Earnings before interest, taxes, depreciation, amortization and impairment, and aircraft rent of $207 million, increased $57 million from the first quarter of 2010.

In the first quarter of 2011, system passenger revenues increased $216 million or 10.3 percent from the first quarter of 2010 on a 5.7 percent growth in traffic and a 4.2 percent improvement in yield. System capacity increased 7.7 percent from the first quarter of 2010, the result of capacity increases implemented after the first quarter of 2010 which continued into the first quarter of 2011, and supported by a 7.3 percent increase in aircraft utilization of existing aircraft.

The system yield growth of 4.2 percent mainly reflected higher fares and fuel surcharges to partly offset higher fuel prices. Premium cabin revenues grew $57 million or almost 13 percent from the same quarter in 2010, mainly due to traffic growth of 12 percent.

Passenger revenue per available seat mile (RASM) increased by 2.2 percent from the first quarter of 2010 due to the yield improvement. Excluding the unfavorable impact of foreign exchange on foreign currency denominated revenues, RASM increased by 3.3 percent in the first quarter of 2011.