Third Quarter
First Nine Months
(Canadian dollars in millions, except where indicated)
2015
2014
$ Change
2015
2014
$ Change
Financial Performance Metrics
Operating revenues
4,023
3,798
225
10,686
10,168
518
Operating income
815
526
289
1,338
709
629
Non-operating expense
(378)
(203)
(175)
(914)
(504)
(410)
Net income
437
323
114
424
205
219
Adjusted net income (1)
734
457
277
1,106
464
642
Operating margin %
20.3%
13.8%
6.5 pp
12.5%
7.0%
5.5 pp
EBITDAR (2)
1,076
749
327
2,109
1,352
757
EBITDAR margin %(2)
26.7%
19.7%
7.0 pp
19.7%
13.3%
6.4 pp
Unrestricted liquidity (3)
3,399
2,802
597
3,399
2,802
597
Net cash flows from operating activities
476
191
285
1,793
921
872
Free cash flow(4)
(90)
(192)
102
592
(194)
786
Adjusted net debt (5)
5,423
4,623
800
5,423
4,623
800
Return on invested capital ("ROIC") % (6)
18.0%
11.4%
6.6 pp
18.0%
11.4%
6.6 pp
Diluted earnings per share
$ 1.48
$ 1.10
$ 0.38
$ 1.43
$ 0.69
$ 0.74
Adjusted earnings per share - diluted(1)
$ 2.50
$ 1.55
$ 0.95
$ 3.77
$ 1.58
$ 2.19
Operating Statistics (7)
% Change
% Change
Revenue passenger miles ("RPM") (millions)
20,462
18,565
10.2
52,244
47,526
9.9
Available seat miles ("ASM") (millions)
23,535
21,299
10.5
62,002
56,486
9.8
Passenger load factor %
86.9%
87.2%
(0.2) pp
84.3%
84.1%
0.1 pp
Passenger revenue per RPM ("Yield") (cents)
17.8
18.5
(3.8)
18.0
18.8
(4.3)
Passenger revenue per ASM ("PRASM") (cents)
15.5
16.1
(4.0)
15.2
15.8
(4.1)
Operating revenue per ASM (cents)
17.1
17.8
(3.9)
17.2
18.0
(4.3)
Operating expense per ASM ("CASM") (cents)
13.6
15.4
(11.3)
15.1
16.7
(10.0)
Adjusted CASM (cents) (8)
10.0
10.1
(0.5)
11.0
11.1
(0.5)
Average number of full-time equivalent ("FTE")
employees (thousands) (9)
25.0
24.6
1.6
24.8
24.5
1.2
Aircraft in operating fleet at period-end
372
362
2.8
372
362
2.8
Average fleet utilization (hours per day)
11.0
10.8
2.4
10.3
10.2
0.9
Seats dispatched (thousands)
14,408
13,518
6.6
39,737
37,403
6.2
Aircraft frequencies (thousands)
154
150
3.1
431
420
2.5
Average stage length (miles) (10)
1,634
1,576
3.7
1,560
1,510
3.3
Fuel cost per litre (cents)
61.4
89.7
(31.5)
64.3
91.8
(29.9)
Fuel litres (millions)
1,290
1,200
7.5
3,443
3,221
6.9
Revenue passengers carried (thousands) (11)
11,723
10,979
6.8
31,439
29,337
7.2
Third Quarter 2015
Third Quarter 2014
Change
Passenger Revenue
$ Million
$ Million
$ Million
% Change
Canada
1,253
1,246
7
0.6
U.S. transborder
694
591
103
17.3
Atlantic
1,027
941
86
9.1
Pacific
568
537
31
5.6
Other
174
161
13
8.5
System
3,716
3,476
240
6.9
Third Quarter 2015
Passenger
Capacity
Traffic
Passenger
versus
Revenue
(ASMs)
(RPMs)
Load Factor
Yield
PRASM
Third Quarter 2014
% Change
% Change
% Change
pp Change
% Change
% Change
Canada
0.6
4.8
3.5
(1.1)
(4.8)
(6.0)
U.S. transborder
17.3
15.2
15.6
0.3
1.4
1.8
Atlantic
9.1
12.7
12.7
-
(3.2)
(3.2)
Pacific
5.6
11.8
12.1
0.2
(5.7)
(5.5)
Other
8.5
12.2
11.5
(0.5)
(3.1)
(3.6)
System
6.9
10.5
10.2
(0.2)
(3.8)
(4.0)
Year-over-Year by Quarter (% Change)
System
Q3'14
Q4'14
Q1'15
Q2'15
Q3'15
Passenger revenues
9.4
7.6
6.9
3.9
6.9
Capacity (ASMs)
9.8
8.5
9.3
9.3
10.5
Traffic (RPMs)
11.0
9.4
10.9
8.7
10.2
Passenger load factor
(pp change)
1.0
0.6
1.2
(0.5)
(0.2)
Yield
(1.3)
(1.9)
(4.2)
(5.0)
(3.8)
PRASM
(0.2)
(1.2)
(2.7)
(5.5)
(4.0)
(Canadian dollars in millions)
September 30, 2015
December 31, 2014
$ Change
Assets
Cash, cash equivalents and short-term investments
$ 3,116
$ 2,275
$ 841
Other current assets
1,270
1,203
67
Current assets
4,386
3,478
908
Property and equipment
6,648
5,998
650
Pension
543
-
543
Intangible assets
310
305
5
Goodwill
311
311
-
Deposits and other assets
557
556
1
Total assets
$ 12,755
$ 10,648
$ 2,107
Liabilities
Current liabilities
$ 3,855
$ 3,537
$ 318
Long-term debt and finance leases
5,576
4,732
844
Pension and other benefit liabilities
2,193
2,403
(210)
Maintenance provisions
923
796
127
Other long-term liabilities
259
313
(54)
Total liabilities
12,806
11,781
1,025
Total equity
(51)
(1,133)
1,082
Total liabilities and equity
$ 12,755
$ 10,648
$ 2,107
September 30, 2015
December 31, 2014
Issued and outstanding shares
Variable voting shares
90,302,896
69,232,535
Voting shares
193,465,645
217,256,759
Total issued and outstanding shares
283,768,541
286,489,294
Class A variable voting and Class B voting shares potentially issuable
Stock options
10,041,440
10,002,975
Total shares potentially issuable
10,041,440
10,002,975
Total outstanding and potentially issuable shares
293,809,981
296,492,269