Summary:
With recent reports from Air Canada, positive feedback has been acquired that an increase of 381 per cent has been achieved in the third quarter. Before interests, taxes, amortization, depreciation, and aircraft rent there has been an 82 per cent increase for last year’s third quarter. This progress has shown significant information that the cost of transformation of Air Canada is on track. In addition, Air Canada had ended the quarter with a strong liquidity position which had surpassed previous years target requirements. Passenger and Premium cabin revenue had also increased this year from last year by 13 per cent for Passenger revenue and 26 per cent for Premium cabin revenue. With the achievement of much success, Air Canada hopes to increase its full year 2010 system capacity from 6.5 to 7.0 per cent and plans to increase full year 2010 domestic capacity by up to 1.0 per cent.
Connections:
In this article I have analyzed that it directly connects with all Chapter 2 in all perspectives. Although this is seemly true, the two main connections I have made are how the operating period and financial statements play a role within the article. The Operating period throughout the article is separated in quarters. This article mainly concentrates on the third quarter where it is compared to last year’s third quarter. Financial statements are connected to this article in many different ways and uses. The change from last year’s balance sheet and this year’s will change largely. The Income statement will help record the total revenue generated throughout the third quarter. With regards to cash flow statement, it will help explain the changes in the amount of cash by detailing the changes in the operating, financing, and investing activities.
Reflection:
With Air Canada looking at a brighter and more successful future it will be easy to depend on them for good reliable service for years to come. The large increase from one year to another proves that Air Canada is a strong airline industry that will continue to work hard to gain customer satisfaction. If revenue generated continues to rise, Air Canada will be looking at many upgrades from the variety of planes, passenger benefits and upgrades in even some of the airports. As quoted from the article, “Air Canada plans to increase its full year 2010 system capacity, as measured by available seat miles ("ASMs"), by 6.5 to 7.0 per cent and plans to increase full year 2010 domestic ASM capacity by up to 1.0 per cent, from the full year 2009 levels.” This quote indicates my last point that with the continuation of revenue growth, Air Canada will one day be one of the leading airline industries.
With recent reports from Air Canada, positive feedback has been acquired that an increase of 381 per cent has been achieved in the third quarter. Before interests, taxes, amortization, depreciation, and aircraft rent there has been an 82 per cent increase for last year’s third quarter. This progress has shown significant information that the cost of transformation of Air Canada is on track. In addition, Air Canada had ended the quarter with a strong liquidity position which had surpassed previous years target requirements. Passenger and Premium cabin revenue had also increased this year from last year by 13 per cent for Passenger revenue and 26 per cent for Premium cabin revenue. With the achievement of much success, Air Canada hopes to increase its full year 2010 system capacity from 6.5 to 7.0 per cent and plans to increase full year 2010 domestic capacity by up to 1.0 per cent.
Connections:
In this article I have analyzed that it directly connects with all Chapter 2 in all perspectives. Although this is seemly true, the two main connections I have made are how the operating period and financial statements play a role within the article. The Operating period throughout the article is separated in quarters. This article mainly concentrates on the third quarter where it is compared to last year’s third quarter. Financial statements are connected to this article in many different ways and uses. The change from last year’s balance sheet and this year’s will change largely. The Income statement will help record the total revenue generated throughout the third quarter. With regards to cash flow statement, it will help explain the changes in the amount of cash by detailing the changes in the operating, financing, and investing activities.
Reflection:
With Air Canada looking at a brighter and more successful future it will be easy to depend on them for good reliable service for years to come. The large increase from one year to another proves that Air Canada is a strong airline industry that will continue to work hard to gain customer satisfaction. If revenue generated continues to rise, Air Canada will be looking at many upgrades from the variety of planes, passenger benefits and upgrades in even some of the airports. As quoted from the article, “Air Canada plans to increase its full year 2010 system capacity, as measured by available seat miles ("ASMs"), by 6.5 to 7.0 per cent and plans to increase full year 2010 domestic ASM capacity by up to 1.0 per cent, from the full year 2009 levels.” This quote indicates my last point that with the continuation of revenue growth, Air Canada will one day be one of the leading airline industries.
After the financial crisis, most airliners that have survived from bankruptcy starting to get back on track and Air Canada is one of them. The comparison of the financial statements between last year third quarter and the recent third quarter shows the major difference in demand and profit. The total revenue increased by 381% which has a better performance than last year, however, the profit margin ratio is still in negative and it represents that the company is still in net loss. If the trend continues as it is, Air Canada should be out of the net loss position. The capacity rate for international and domestic flight should increase because after the devastated financial crisis and economic starts to climb up, people tend to relax more and travel elsewhere. It would definitely benefit the airline industry such as Air Canada.
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