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Air Canada Q4 Operating Income Up $85 Million

Posted on: Monday, 11 February 2008, 06:00 CST

Air Canada has reported an operating income of $72 million for the fourth quarter of 2007, compared to an operating loss of $13 million reported in the fourth quarter of 2006, an improvement of $85 million.

According to Air Canada, for the fourth quarter of 2007, the growth in operating income was due to an increase in operating revenues of $90 million or 4%. As well, unit cost, as measured by operating expense per available seat mile, decreased 2% from the fourth quarter of 2006.

Air Canada has reported net income for the fourth quarter of $35 million, which included net gains on foreign currency monetary items of $20 million, compared to a net loss of $144 million in the fourth quarter of 2006, which included net losses on foreign currency monetary items of $107 million.

Air Canada's passenger revenues increased $125 million or 6% over the fourth quarter of 2006 to $2.2 billion, mainly due to traffic growth of 2.6% on a capacity increase of 2.6% and a yield improvement, as measured by passenger revenue per revenue passenger mile of 2.1%. System revenue per available seat mile rose 2.1% compared to the fourth quarter of 2006 due to the yield growth.

Montie Brewer, president and CEO of Air Canada, said: "I am very pleased to report the strongest fourth quarter and full year results in Air Canada's history. Our new revenue model continues to perform well and with an unrelenting focus on cost reduction and innovation, we have achieved our business plan objectives for the year."

Source: Datamonitor

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