Air Canada's load factor climbs to July record

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Blastor
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Air Canada's load factor climbs to July record

#1 Post by Blastor » Sun Aug 29, 2004 6:00 am

Reuters
Air Canada's load factor climbs to July record

Thursday August 5, 12:27 pm ET

MONTREAL, Aug 5 (Reuters) - Air Canada (Toronto:AC.TO - News) sold 80.4 percent of its seats in July, the highest level ever for the month, while traffic and yields continued to recover, the world's 11th largest airline said on Thursday.

Load factor, the percentage of seats filled by paying passengers, rose 2.3 points and set a fourth consecutive monthly record, Canada's biggest airline said.

Overall traffic rose 12.8 percent in July, but capacity increased only 9.5 percent, Air Canada said.

"Yields on the domestic and international services continued to rebound strongly from the depressed 2003 levels," chief financial officer Rob Peterson said in a release.

Traffic surged 112 percent over the Pacific, but rose only 0.2 percent over the Atlantic and 0.7 percent on U.S. routes, the company said.

In the domestic market, Air Canada said traffic remained flat, in contrast with its main low-cost rival, Calgary-based WestJet Airlines Ltd. (Toronto:WJA.TO - News), which reported a 29 percent jump in traffic for the same month.

Montreal-based Air Canada prepares to emerge from bankruptcy protection later this year after more than 15 months of cost cutting and restructuring.

http://biz.yahoo.com/rc/040805/airlines ... fic_1.html
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#2 Post by LT » Sun Aug 29, 2004 10:40 am

Record high, yet they're producing record lows...

Lets see what new height these "records" will take Air Canada...

The analyst said $45 next year.. I'll bet we'll be at $4.5
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#3 Post by Rebel » Mon Aug 30, 2004 5:05 am

LT

"The implied value of the new shares coming out of bankruptcy protection is about $31. RBC analyst Nick Morton believes they should be worth $49 one year out."

Gee you're so blinded by your own hatred of AC you can't even get the direct quotes correct..How sad for you..
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#4 Post by CanadaEH » Thu Sep 02, 2004 4:47 pm

As long as Air Canada does as well as it is forcasting/expecting, the shares *should* go up as opposed to down. I'd imagine the shares to skyrocket initially (provided the results are on par with expectations), drop during Q4-Q2 and rise again in Q3. However, there are way to many variables to even begin to guess how ACE shares will perform given the unpredictable nature of our industry.

The employees are getting some sort of stock options aren't they? Hopefully for them the ACE stocks will perform well enough to make the employees happy.
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#5 Post by Blastor » Thu Sep 02, 2004 5:10 pm

BTW Canada He....how's your stock?? Has the bleeding stop? Wait for the Lawsuit to be in full swing and you can kiss them Bye-bye

But you still have that great profit share, right? Should be interesting, now that you're sharing it with 7000+ employees....
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#6 Post by CanadaEH » Thu Sep 02, 2004 5:22 pm

How stupid are you?

You aren't worth the time of me explaining how I'm compensated. I'm fine with my stock price and profit share (for all 4500 of us, not 7000+), they're doing just fine.
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#7 Post by Schlem » Thu Sep 02, 2004 10:48 pm

It works best to just ignore Blastor... the forum tabloid queen.
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The Truth

#8 Post by Trickkles » Fri Sep 03, 2004 5:34 pm

People in my department in Calgary are complaining about the stock price and the last time I looked the employee numbers were over 6500.
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#9 Post by CanadaEH » Fri Sep 03, 2004 6:53 pm

Trickkles: The employee numbers don't reflect the real number of our workforce. When people leave Westjet we don't fill their number, which is why our real workforce number is around 4500 (give or take a few hundred) and not the latest 6500 or whatever number we are at now for new hires.

Also, regarding stock price.. We need to take into consideration that the recent drop in stock price isn't as bad as some want to make it out to be. I've lost about 20% of my investment; however, I'm still up 30% (because WJ has matched my contribution). So really, I haven't lost a penny of my own money and I'm still up 30%. It's a far cry from when our shares were at $30.00, that's for sure.

Another thing to consider is that day-to-day fluctuations are meaningless, really. Our ESP shares are purchased based on the monthly average of WJA share price. While our shares hover around $13-$14, so do the shares that I've purchased in that span of time. Our shares will rise again, contrary to the wishes of some, and when they do all that worry and complaining will be a thing of the past. The money I contribute is an investment for my future, and my future only. I am not using the ESP program to make a quick buck, I am taking advantage of a program that is very beneficial to those who understand what it is there for and for those willing to stick it out for a few years.

Let me ask you this: would you rather be purchasing shares at $30.00 or be purchasing shares at $13.00? Keep in mind that our shares recently split... Thing's aren't as bad as they seem.
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#10 Post by Trickkles » Fri Sep 03, 2004 7:10 pm

Because the wages at WJ are low, I know of many who use their stocks to 'top up their wage'. As soon as they can, they cash them in. Hence the complaining.
Personally, I view it as a retirement investment. When I tell people that don't work for WJ that there is no pension plans, they are aghast. It bothers me that WJ claims that they are employee friendly and yet it drives people into a situation of playing 'Russian rollette' with their future.
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#11 Post by CanadaEH » Fri Sep 03, 2004 8:19 pm

I agree that our wages are low, but I do feel that we get compensated fairly for what we do. Should a full-time CSA be making anymore than $20/hour? I think they max out at $17.20 or something like that, not including ESP or profit share. That's not bad for a job that requires no post-secondary education.

I'm an employee that doesn't make much, but at the same time I was explained how we would be compensated. I tell all of the new-hires I come across that the first year will be rough, and I also tell them to do the full 20% ESP if they can afford to do so. After that one year, most of these employees are quite satisfied with the choice they have made. There are obviously those who aren't, and I know of a few myself. Again, if the pay of a CSA or FA isn't what one expects it do be, there are other jobs out there. If they really want to earn money, they should go back to school and get a good education. I sympathize with your co-workers, but Westjet isn't forcing these people to continue working here.

When our shares aren't performing well, we all suffer. When our shares perform well, we all win. It's a balance that we'll all have to get used to. We've had eight years of good fortunes, it's about time we hit a few bumps in the road. I'd still much rather have my share program than have to make concessions.

Nothing personal.
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#12 Post by Blastor » Fri Sep 03, 2004 10:25 pm

Stock options are not an investment. They are a risk. It's akin to go to Las Vegas with the mindset of making a fortune. You won't! To believe otherwise is to admit severe brainwashing!!

People who were lucky are the first 500 or so Westjeters. They got the stock for peanuts and made lots of $$$$$ if they got rid of them when the going was good. Things have change and those days aren't coming back...

BTW how's that union push coming at "in-flight" ?
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#13 Post by Swamp Donkey » Fri Sep 03, 2004 11:43 pm

Damn! I guess I won't be buying any A/C stock then. I'll just go to Vegas...it's more fun! :lol:
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#14 Post by CanadaEH » Sat Sep 04, 2004 1:07 pm

Stock options are not an investment. They are a risk. It's akin to go to Las Vegas with the mindset of making a fortune. You won't! To believe otherwise is to admit severe brainwashing!!

People who were lucky are the first 500 or so Westjeters. They got the stock for peanuts and made lots of $$$$$ if they got rid of them when the going was good. Things have change and those days aren't coming back...

BTW how's that union push coming at "in-flight" ?


Stock options are a risk, absolutely. I know that I understand that, as do most of my co-workers. The benefit of our stock options is that we get matched $1 for $1 by Westjet. Like I said previously, during this big "drop" in our stock prices, I'm still up 30% in what I've invested because of the matched portion. I still have the option of selling my shares right this second but I chose not to. I'm taking the risk that our shares will rise again.

I know a lot of people who haven't sold a single share since they started (and these are the first 500 employees you speak of) and they have enough shares that if they sold them at todays price they'll have enough to buy a 4 bedroom home in Vancouver and a nice car and still have money kicking around. Not bad for looking into the future eh? I know I won't be as lucky as them, but at least my shares are a good way to save money instead of spending it.

As for that union push, how's it been going for the past eight years they've been trying it?
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#15 Post by Rebel » Sun Sep 05, 2004 8:36 am

Talk about a thread going off topic, well anyway this new direction is most welcome and should be discussed.

Owning airline stocks is a risky proposition closely associated with playing Russian roulette. I’ve been there, done that and know a great many people who got burned. It’s akin to putting all your eggs into one basket when your total portfolio consists of only one stock. The financial experts (?) tell us that diversification is the key to a successful portfolio. Of course the Government won’t allow its citizens to totally diversify their RRSP’s portfolio’s which is sort of ironic, but I digress.

Like it or not everyone who lives in Canada has exposure to the stock market in one way or another, think the CPP…
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#16 Post by Blastor » Sun Sep 05, 2004 11:50 am

Rebel, this so true.

Airlines stocks are probably the "highest risk" stock ever..

It will take just one big incident or unusualy bad weather, low tourist count, high fuel price etc.. to wipe out whatever you have "invested"..

Westjeters have to "buy into" the stocks options because their normal wages are so low that's the only hope they have to "make up the difference" and to be on par with the rest of the industry.

Just wait for the final of the lawsuit. Massive dumping of Wj stock!!
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#17 Post by CanadaEH » Sun Sep 05, 2004 1:07 pm

Owning airline stocks is a risky proposition closely associated with playing Russian roulette. I’ve been there, done that and know a great many people who got burned. It’s akin to putting all your eggs into one basket when your total portfolio consists of only one stock. The financial experts (?) tell us that diversification is the key to a successful portfolio. Of course the Government won’t allow its citizens to totally diversify their RRSP’s portfolio’s which is sort of ironic, but I digress.

I know that the recent drop in share price has taught a lot of people just how unpredictable the stock market can be. I know nothing about the stock market when i first joined. Through my co-workers, my own research, and later some advice from a family member, I have a pretty good understanding of how the stock market works and how I need to diversify my portfolio. There are many people like me and there are many people who aren't. For those who aren't, it's a risk they obviously don't understand or aren't willing to learn about. That's not my problem.

You know what they say - if you want to make a million in the airline industry, invest a billion.... :wink:
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#18 Post by Rebel » Sun Sep 05, 2004 3:00 pm

You know what they say - if you want to make a million in the airline industry, invest a billion.... :wink:[/quote]

:):)
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#19 Post by Rebel » Sun Sep 05, 2004 3:01 pm

xx
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