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) |