Air Canada reported system passenger revenues for 2012 were $10.737 billion, an increase of $529 million on a 2.6 percent growth in traffic and a 1.8 percent improvement in yield. Passenger revenue per available seat mile (RASM) increased 3.2 per cent from 2011 due to the yield growth and a 1.1 percentage point improvement in passenger load factor.

Operating expenses increased $250 million from 2011, reflecting higher fuel costs, wages, salaries and benefits expense, capacity purchase costs and other expenses. Partly offsetting these increases was an operating expense reduction of $124 million related to changes to the terms of the ACPA collective agreement pertaining to retirement age and a decrease in depreciation, amortization and impairment expense. Operating income of $437 million increased $258 million from 2011.

In the fourth quarter of 2012, system passenger revenues increased $139 million or 5.8 per cent, on a 4.2 per cent growth in traffic and a 1.2 per cent improvement in yield. RASM increased 4.2 per cent from the fourth quarter of 2011 due to a 2.3 percentage point improvement in passenger load factor and to the yield growth. In the fourth quarter of 2012, operating income of $46 million improved $144 million from the fourth quarter of 2011.

“I am extremely pleased to report a strong fourth quarter and a full year net profit for Air Canada of $131 million in 2012,” said Calin Rovinescu, Air Canada’s president and CEO. “These results reflect the success of Air Canada’s ongoing transformation aligned with strict cost control and disciplined capacity management. In particular, the strong revenue performance of our international network was led by significant improvements, not only in the Pacific region but also on the Atlantic where we overcame challenges faced by the industry earlier in the year. Our focus remains firmly fixed on further cost reduction and increased revenue generation, including improved yields, positioning us well for the future.”