Air Canada reports record 4th quarter earnings

[sanjet]

Record operating income of $433 million in 2007 compared to operating income (excluding special charges) of $236 million in 2006, an increase of $197 million.

http://www.newswire.ca/en/releases/arch ... c7886.html

Not bad, thats after EBITDAR!

[Four1oh]

Congratulations! It looks nice, and I'll apologize now for not blindly believing it, but the numbers were made to look nice before. What 'special charges'? What's the real numbers this time?

[Valcore]

cough (bullshit) cough

[. .]

Valcore: We get it, sunwing is the best place to fly, they have the best hiring process (after all they hired you right?), they're the most profitable, they have the coolest deployments, etc etc etc etc. Honestly no need to come in here and make a remark in every thread. Everyone here has already been PFO'ed by sunwing, and they're all trying to make a go at their second choice.

[yycflyguy]

cough (bullshit) cough

You are the FO that nobody wants to talk to on the layovers, right?

[Four1oh]

Ouch! For the record, I wasn't stirring the pot... just that 'other' guy...

[swervin]

Not sure how much was made on the actual operation. Seems like around 20 million was made on foreign exchange.

[Valcore]

So you finnaly get it do you Endless. Bout time. Sunwing is the best airline around. We don't need attitudes like yours at my company. Im sure glad you got PFO'd. We love our jobs. AC lost money. It's ok to be in denial though. Bye.

[Four1oh]

Valcore, I'll assume you're not trolling. Why do you figure they had a loss?

[Valcore]

Valcore, I'll assume you're not trolling. Why do you figure they had a loss?

Well 410. You know as well as anyone that Aircanada always spins thier numbers shaping what was another loss into a profit. Are you trying to tell me they haven't done so in the past?. No im not trying to troll, but from AC's past record, how can you not be sceptical?

[backon3]

Speaking of sceptical. Hey Valcore where do you plan to go after Sunwing folds? And you make fun of OUR paintjob.

[whiteguy]

Valcore, I'll assume you're not trolling. Why do you figure they had a loss?

Well 410. You know as well as anyone that Aircanada always spins thier numbers shaping what was another loss into a profit. Are you trying to tell me they haven't done so in the past?. No im not trying to troll, but from AC's past record, how can you not be sceptical?

My vote for funniest post ever. LOL.

[Valcore]

Speaking of sceptical. Hey Valcore where do you plan to go after Sunwing folds? And you make fun of OUR paintjob.

I can ask you the same question. where you gonna go when AC folds? Any your paint does suck.

How do you figure Sunwing is going out of business? Weve been around for over 20 years.

[. .]

How do you figure Sunwing is going out of business? Weve been around for over 20 years.

Not to stir the pot here, but by that comment the length a company has been in business should determine how long it will stay in business. Perhaps you've noticed a 320 with a large red 70 on the tail. You come back to me when you figure out why that 70 was painted on.

[BigB]

Honestly not trying to troll here guys, but is there anyone with some accounting/commerce schmucks, that can shed some detailed light on the meaning of "foreign currency monetary items"? I've noticed the same applications on WJ reports as well.

Oh boy, I've just opened myself up to a "2nd year economics' student" reply from THEICEMAN....ooops....sorry. Seriously though....

[Valcore]

How do you figure Sunwing is going out of business? Weve been around for over 20 years.

Not to stir the pot here, but by that comment the length a company has been in business should determine how long it will stay in business. Perhaps you've noticed a 320 with a large red 70 on the tail. You come back to me when you figure out why that 70 was painted on.

Jesus man. How long you been there now? a week? And they say the Koolaid is bad.

Can't believe you got through that paragraph without mentioning "Legacy"

[Dockjock]

Aircraft leases and jet fuel are both priced in US dollars, among other various expenses. The Canadian dollar has risen against the US dollar this year, therefore the amount of money it takes to pay for costs priced in US dollars has gone down in Canadian dollar terms. Hence foreign exchange gain. Likewise the opposite will be true if the Canadian dollar falls relative to the US dollar. The reason it is specifically mentioned is transparency; if it wasn't, the results would appear artificially inflated.

[TyrellCorp]

How do you figure Sunwing is going out of business? Weve been around for over 20 years.

Not to stir the pot here, but by that comment the length a company has been in business should determine how long it will stay in business. Perhaps you've noticed a 320 with a large red 70 on the tail. You come back to me when you figure out why that 70 was painted on.

Jesus man. How long you been there now? a week? And they say the Koolaid is bad.

Can't believe you got through that paragraph without mentioning "Legacy"

I have some very close friends that fly for Sunwing. They are top notch guys and it's a shame that they have to deal with the likes of someone like you.
If you don't have anything positive to contribute, please stay off our forum. Thank you.

[Four1oh]

soooo, anyway, back on topic? yes?

[tonysoprano]

"...making the numbers look nice" is illegal. Canadian accounting practices are pretty strict. You can spin it anyway you want, the numbers can't lie. AC is the new "old" company. Get use to it.

[Four1oh]

If you say so, Tony, then ok, it must be true.

[tonysoprano]

There can't always be an "excuse" why we make money. Sometimes there's a reason. I'm trying to get use to it too.

[Four1oh]

Well, good for you guys if it's here to stay, I just hope all this isn't from the parcelling out of the business, that's all. I've noticed since CCAA, there's been a 'special cash injection' just about every quarter from the selloff of a piece of the company, so you'll have to excuse the general skepticism. And hey, if it isn't smoke and mirrors and it's a trend that's here to stay, that's great too, it means that my company is making money hand over fist!

[tonysoprano]

Four1oh.
Where are you getting the "parcelling out of the business"? See, you should bring yourself up to date first before getting too concerned. Have a read at ATW's report. The encouraging part is that operating income has gone up (fourfold). No mention of any parcelling out. Like I said, get use to it. I'm not saying we'll see a profit every quarter, heck I think the tough times are just ahead. But the company has gone through hell and back and has changed the way it does business. Terms like "special injection" are for accountants and analysts. You and I are just pilots. The ship is sailing nicely for now. Try and choke down these facts bro.

Air Canada posts impressive C$429 million 2007 profit
Friday February 8, 2008
Air Canada reported net income of C$429 million ($426.3 million) for 2007, significantly turned around from a net loss of C$74 million in 2006, crediting "an unrelenting focus on cost reduction" and the strength of the Canadian dollar for the strong result.

The carrier also benefited from net gains on foreign currency monetary items of C$317 million. "Our new revenue model continues to perform well," President and CEO Montie Brewer said, adding that AC's cost control "fundamentals" and "innovative" branding and pricing strategies position it to "continue managing the impact of record high fuel prices."

Revenue increased 4.8% to C$10.65 billion and operating income rose nearly fourfold to C$433 million from C$114 million in the prior year. Traffic escalated 3.3% to 50.63 billion RPMs on a 2.8% lift in capacity to 62.81 billion ASMs, producing a load factor of 80.6%, up 0.4 point. Yield improved 1.6% to C18.4 cents as RASM increased 1.9% to C17 cents and CASM lowered 1.2% to C16.3 cents. CASM excluding fuel fell 0.8% to C12.2 cents.

Fourth-quarter net income was C$35 million, reversed from a C$144 million loss in the year-ago period.

Looking ahead, AC projects capacity to grow 2.5%-4% in 2008 and believes CASM excluding fuel will drop slightly this year. Brewer told analysts and reporters yesterday that potential consolidation among US majors could help AC. "In the short term, it will keep them distracted," he said.

Noting that it took delivery of eight 777s (five -300ERs and three -200LRs) last year and will receive nine more by 2009, he said AC will maintain "an advantage over our neighbors to the south" by offering North American passengers service aboard newer aircraft on long-haul flights. "Consolidation causes you to look inwardly for quite awhile, not outward," he said, predicting that merging carriers will be forced to put off major aircraft orders "for another year or two and that helps us."


by Aaron Karp

[Four1oh]

don't assume how I chew on anything, my friend. I have no problem if you company is profitable, good on ya if it isn't short term, and good on ya if it isn't due to magical allocation of resources. That's all. I can wait and see. I'm a patient guy.