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Gold/Mining/Energy : Air Canada is taking off? -- Ignore unavailable to you. Want to Upgrade?

To: James R. who wrote (921)	10/19/1999 11:01:00 PM
From: John Sladek	Read Replies (1) \| Respond to of 1033

I realize it is very early and too soon to say for sure, but it would not suprise me if A.C. stalls long enough to force C.A. bankrup. CA's latest operating numbers look pretty weak - #reply-11644955 A domestic load factor of 65.8% seems too low to be profitable. Comparison with last year is not valid, since CA benefitied from increased traffic in Sept 1998 due to strike at AC. Comparison with Sept 1997 is possibly a more significant comparison [see below]. Regards, John Sladek October 16, 1997: Improved September Operating Statistics Management of Canadian Airlines announces a improved September traffic statistics. This improvement demonstrates that the major route restructuring undertaken earlier in the year is producing significant results. For the month of September 1997, Canadian Airlines' system passenger load factor improved by 2.5 percentage points over September 1996 to 78.2 per cent. Year-to-date for 1997, Canadian Airlines' system passenger load factor increased 0.9 percentage points over 1996 to 74.1 per cent. In the domestic market, Canadian Airlines reduced capacity (ASM's) in order to move aircraft to more profitable transborder and international routes. September 1997 results have validated this strategy as Canadian Airlines' domestic passenger load increased 6.0 percentage points to 78.0 per cent in September 1997 versus September 1996. Despite less capacity (ASM's), Canadian Airlines' domestic traffic (RPM's) increased by 2.8 per cent when combined with the results of Canadian Regional. Year-to-date 1997, Canadian Airlines' domestic passenger load factor increased 1.7 percentage points to 71.9 per cent over 1996. Canadian Airlines' international and charter passenger load factor increased slightly in September 1997 versus September 1996 to 78.3 per cent, despite lower transborder load factors. The lower transborder passenger load factors are consistent with Canadian Airlines' strategy of refocusing its transborder flying on higher yield, more profitable business destinations rather than lower yield, higher traffic vacation destinations. Canadian Airlines' Vancouver hub strategy led to improved results in September, due to a strong rebound in the Hong Kong and Japan markets, as well as continued strength in the Taiwan and China markets. South America and the United Kingdom also continue to perform very strongly. Year-to-date 1997, international and charter passenger load factor increased 0.4 percentage points over 1996 to to 75.3 per cent. "We continue to be very pleased with our traffic numbers" said Doug Carty, Chief Financial Officer. "Our four year Operational Restructuring Plan is working and we are now focusing our attention on opportunities generated by our new network." <Pre> September Operating Statistics (in millions) Revenue Passenger Miles (RPMs) September97 September 96 Change Domestic 522 523 (0.2%) International and Charter 972 982 (1.0%) Canadian Total 1,494 1,505 (0.7%) Canadian Regional 93 75 24.0% System Total 1,587 1,580 0.4% Available Seat Miles (ASMs) Domestic 669 726 (7.9%) International and Charter 1,241 1,261 (1.6%) Canadian Total 1,910 1,987 (3.9%) Canadian Regional 153 148 3.4% System Total 2,063 2,135 (3.4%) Passenger Load Factor Domestic 78.0% 72.0% 6.0 pts International and Charter 78.3% 77.9% 0.4 pts Canadian Total 78.2% 75.7% 2.5 pts Canadian Regional 60.8% 50.7% 10.1 pts System Total 76.9% 74.0% 2.9 pts Revenue Passenger Miles (RPMs) YTD 97 YTD 96 Change Domestic 4,321 4,424 (2.3%) International and Charter 8,055 8,309 (3.1%) Canadian Total 12,376 12,733 (2.8%) Canadian Regional 816 650 25.5% System Total 13,192 13,383 (1.4%) Available Sent Miles (ASMs) Domestic 6,007 6,306 (4.7%) International and Charter 10,693 11,095 (3.6%) Canadian Total 16,700 17,401 (4.0%) Canadian Regional 1,366 1,303 4.8% System Total 18,066 18,704 (3.4%) Passenger Load Factor Domestic 71.9% 70.2% 1.7 pts International and Charter 75.3% 74.9% 0.4 pts Canadian Total 74.1% 73.2% 0.9 pts Canadian Regional 59.7% 49.9% 9.8 pts System Total 73.0% 71.6% 1.4 pts TEL: (403) 294-6821 Jeff Angel, Canadian Airlines 1(800)661-4716 TEL: (514) 364-7759 France Poulin PGR: (514) 749-3580 Canadian Airlines (in Quebec)