Highlights

View the most recent version.

Archived Content

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please "contact us" to request a format other than those available.

Archived

This page has been archived on the Web.

[an error occurred while processing this directive]51-004-x[an error occurred while processing this directive] [an error occurred while processing this directive]

1. In 2010, Canadian Level I and II air carriers reported 57.5 million enplaned passengers in their scheduled and charter operations, up 8.7% from 2009. The scheduled passenger counts totalled 53.1 million and the charter passenger counts, 4.3 million. The scheduled passenger counts reached 14.6 million in the third quarter of 2010, the highest number ever recorded for a quarter. In terms of passenger-kilometres flown, these carriers recorded 135.0 billion passenger-kilometres in their scheduled and charter operations in 2010, up 11.2% from the previous year.
2. In 2010, Canadian Level I and II air carriers reported a slight improvement in their scheduled passenger load factor (a measure of the fullness of their aircraft) compared to 2009. The passenger load factor improved from 80.5% in 2009 to 81.3% in 2010, as the demand, as measured by passenger-kilometres, advanced at a slightly faster pace (+9.8%) than the supply (capacity), as measured by available seat-kilometres (+8.7%). The passenger load factor on scheduled flights reached an all-time high (84.3%) in the third quarter of 2010—largely due to a stronger increase in demand than in capacity; in the same quarter in 2009, it had reached 83.2%. The capacity increased in the four quarters of 2010, continuing the upward trend that began in the fourth quarter of 2009, which coincided with the end of the economic downturn—emanating from global financial market crisis—that started to impact Canada (and the world) in the second half of 2008.
3. In 2010, the total operating revenues generated by the Canadian Level I and II air carriers amounted to $16.3 billion, up 15.6% (or +$2.2 billion) from 2009, slightly above the 2008 level of $16.2 billion. The growth in operating revenues (passenger revenues accounted for 89.4% of total operating revenues in 2010) can be mainly tied to a yield (passenger revenues per passenger-kilometre) increase of 3.8% driven by the continuous recovery in the Canadian economy and in the airline industry, growing business traffic and increased air fares. However, substantial price competition from Canadian low-cost carriers translated into limited ability for major airlines to increase fares. The total operating expenses amounted to $15.5 billion in 2010, up 10.5% (or +$1.5 billion) from the previous year. This rise was led by airline capacity growth, higher fuel prices, and increased wages and salaries paid. Partly offsetting these increases was the impact of a stronger Canadian dollar on foreign currency denominated expenses (mainly U.S. dollars). These carriers reported an operating income of $805.9 million in 2010.
4. Canadian Level I and II air carriers reported a net income of $441.7 million in 2010, an improvement from the $177.6 million profit recorded in 2009. The non-operating expenses of nearly $300 million in the second quarter of 2010 dampened the increase in net income.
5. Between the first quarter of 2010 and the fourth quarter of 2010, the operating ratio (it displays the carrier's ability to meet its short-term obligations and represents the proportion of operating revenue absorbed by operating expenses) hovered between 0.89 in the third quarter and 1.02 in the first quarter. Overall, this means that the Canadian Level I and II air carriers made 11.0 cents of profit for every dollar spent in the third quarter of 2010. An operating ratio greater than one indicates that these carriers experienced an operating loss in the first quarter of 2010.
6. Between the first quarter of 2010 and the fourth quarter of 2010, the highest profit margin (it indicates the profit margin earned by revenue dollar and is obtained by dividing net income by operating revenue—this ratio is expressed as a percentage) was recorded in the third quarter (9.3%). This shows that every dollar of service sold earned 9.3 cents of profit for the Canadian Level I and II air carriers. The negative results for the first quarter (-0.9%) and the second quarter (-3.9%) reflected the increases in operating expenses (aircraft operations—fuel cost and salaries and wages) and non-operating expenses (net miscellaneous non-operating expenses), which offset the gains in operating revenues.
7. Total employment reported by Canadian Level I and II air carriers rose in each quarter of 2010 compared to the previous year, the gains ranging from 30.3% in the first quarter to 33.9% in the third quarter. The string of quarterly year-over-year increases for total wages and salaries paid by Canadian Level I and II air carriers that began in the fourth quarter of 2005 continued in each quarter of 2010.