Unaudited
September 30,
December 31,
(Canadian dollars in millions)
2015
2014
ASSETS
Current
Cash and cash equivalents
$ 910
$ 661
Short-term investments
2,206
1,614
Total cash, cash equivalents and short-term investments
3,116
2,275
Restricted cash
94
89
Accounts receivable
751
656
Aircraft fuel inventory
62
72
Spare parts and supplies inventory
101
91
Prepaid expenses and other current assets
262
295
Total current assets
4,386
3,478
Property and equipment
Note 3
6,648
5,998
Pension
Note 5
543
-
Intangible assets
310
305
Goodwill
311
311
Deposits and other assets
557
556
Total assets
$ 12,755
$ 10,648
LIABILITIES
Current
Accounts payable and accrued liabilities
$ 1,452
$ 1,259
Advance ticket sales
1,841
1,794
Current portion of long-term debt and finance leases
Note 4
562
484
Total current liabilities
3,855
3,537
Long-term debt and finance leases
Note 4
5,576
4,732
Pension and other benefit liabilities
Note 5
2,193
2,403
Maintenance provisions
923
796
Other long-term liabilities
259
313
Total liabilities
$ 12,806
$ 11,781
EQUITY
Shareholders' equity
Share capital
827
835
Contributed surplus
79
77
Deficit
(1,020)
(2,113)
Total shareholders' equity
(114)
(1,201)
Non-controlling interests
63
68
Total equity
(51)
(1,133)
Total liabilities and equity
$ 12,755
$ 10,648
Three months ended
Nine months ended
Unaudited
September 30
September 30
(Canadian dollars in millions except per share figures)
2015
2014
2015
2014
Operating revenues
Passenger
$ 3,716
$ 3,476
$ 9,584
$ 9,049
Cargo
119
128
371
369
Other
188
194
731
750
Total revenues
4,023
3,798
10,686
10,168
Operating expenses
Aircraft fuel
697
939
1,937
2,567
Regional airlines expense
Notes 2 & 10
584
608
1,730
1,753
Wages, salaries and benefits
Note 5
598
549
1,734
1,641
Airport and navigation fees
223
208
609
577
Aircraft maintenance
192
158
570
491
Depreciation, amortization and impairment
Note 3
165
142
495
396
Sales and distribution costs
157
146
463
437
Ground package costs
63
56
328
303
Aircraft rent
89
74
255
226
Food, beverages and supplies
91
84
233
224
Communications and information technology
52
49
161
148
Other
297
259
833
696
Total operating expenses
3,208
3,272
9,348
9,459
Operating income
815
526
1,338
709
Non-operating income (expense)
Foreign exchange loss
Note 9
(251)
(71)
(603)
(192)
Interest income
12
11
33
29
Interest expense
(106)
(81)
(290)
(239)
Interest capitalized
20
6
50
21
Net financing expense relating to employee benefits
Note 5
(28)
(34)
(78)
(102)
Fuel and other derivatives
Note 9
(20)
(31)
(14)
(10)
Other
(5)
(3)
(12)
(11)
Total non-operating expense
(378)
(203)
(914)
(504)
Income before income taxes
437
323
424
205
Income taxes
-
-
-
-
Net income for the period
$ 437
$ 323
$ 424
$ 205
Net income attributable to:
Shareholders of Air Canada
435
321
420
201
Non-controlling interests
2
2
4
4
$ 437
$ 323
$ 424
$ 205
Net income per share attributable to shareholders of Air Canada
Note 7
Basic earnings per share
$ 1.52
$ 1.13
$ 1.47
$ 0.70
Diluted earnings per share
1.48
1.10
1.43
0.69
Three months ended
Nine months ended
Unaudited
September 30
September 30
(Canadian dollars in millions)
2015
2014
2015
2014
Cash flows from (used for)
Operating
Net income for the period
$ 437
$ 323
$ 424
$ 205
Adjustments to reconcile to net cash from operations
Depreciation, amortization and impairment
169
146
507
409
Foreign exchange loss
299
73
664
201
Employee benefit funding less (greater) than expense
Note 5
9
(27)
(14)
(63)
Fuel and other derivatives
Note 9
10
23
(7)
7
Change in maintenance provisions
20
32
22
64
Changes in non-cash working capital balances
(470)
(379)
236
129
Other
2
-
(39)
(31)
Net cash flows from operating activities
476
191
1,793
921
Financing
Proceeds from borrowings
302
194
591
978
Reduction of long-term debt and finance lease obligations
(124)
(166)
(386)
(556)
Distributions related to aircraft special purpose leasing
entities
-
-
(9)
-
Issue of common shares
-
1
3
1
Shares purchased for cancellation
Note 6
(41)
-
(42)
-
Financing fees
Note 4
(1)
-
(23)
-
Net cash flows from financing activities
136
29
134
423
Investing
Short-term investments
(227)
157
(517)
(137)
Additions to property, equipment and intangible assets
(566)
(383)
(1,201)
(1,115)
Proceeds from sale of assets
7
65
17
68
Other
7
(23)
23
(13)
Net cash flows used in investing activities
(779)
(184)
(1,678)
(1,197)
Increase (decrease) in cash and cash equivalents
(167)
36
249
147
Cash and cash equivalents, beginning of period
1,077
861
661
750
Cash and cash equivalents, end of period
$ 910
$ 897
$ 910
$ 897
Cash payments of interest
$ 39
$ 33
$ 188
$ 172
Cash payments (recovery) of income taxes
$ -
$ (1)
$ -
$ (1)