Air Canada’s Favourable Top Line 2Q2014 Results But 7% Capacity Growth Provokes Reduced Yields
Air Canada’s record profitability in 2Q2014 is being undermined by a decline in the Airline’s yield performance, resulting in the Airline defending its strategy of improving its bottom line by an increased stage length and a higher proportion of economy seating.
The underlying philosophy is that Air Canada is creating a framework for unit cost to decline at a greater level than yields and unit revenues as it works to reduce its unit cost, excluding fuel, by 15% from CY2012 levels in the medium term.
It may take some time for the market to understand Air Canada’s tactics but the Airline’s 2Q2014 results seem to indicate there is merit to the line’s efforts to meet its goals of long standing profitability.
Air Canada’s higher mix of economy seating dilutes yields
Air Canada’s yields fell 2% year on year in 2Q2014 largely through a combination of a 2.5% increase in stage length, the operation of higher density Aircraft and a higher proportion of economy class seats in operation. The Airline’s passenger unit revenues fell 0.8% year on year.
Air Canada is creating a framework for unit cost,
Airline’s yield performance,
results indicate there is merit to the line’s efforts to meet its goals,
The Airline’s passenger unit revenues fell about 1% ,
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Air Canada’s record profitability in 2Q2014 is being undermined by a decline in the Airline’s yield performance, resulting in the Airline defending its strategy of improving its bottom line by an increased stage length and a higher proportion of economy seating.
The underlying philosophy is that Air Canada is creating a framework for unit cost to decline at a greater level than yields and unit revenues as it works to reduce its unit cost, excluding fuel, by 15% from CY2012 levels in the medium term.
It may take some time for the market to understand Air Canada’s tactics but the Airline’s 2Q2014 results seem to indicate there is merit to the line’s efforts to meet its goals of long standing profitability.
Air Canada’s higher mix of economy seating dilutes yields
Air Canada’s yields fell 2% year on year in 2Q2014 largely through a combination of a 2.5% increase in stage length, the operation of higher density Aircraft and a higher proportion of economy class seats in operation. The Airline’s passenger unit revenues fell 0.8% year on year.
Airline’s yield performance,
results indicate there is merit to the line’s efforts to meet its goals,
The Airline’s passenger unit revenues fell about 1% ,
Canadian Lottery Results,
Canadian Harness Results,
Canadian Wrestling Results,
Lottery Numbers Canada,
Race Results Canada,
Canadian Harness,
Canadian Standardbred,
Woodbine Horse Racing Results,
Mohini Porwal [ B Sc] Trainee News Editor
Trainee News Editor
mohini.aerosoft@gmail.com
https://www.facebook.com/profile.php?id=100005944964687
www.Philippine-Aviation-News.blogspot.com
www.Newzealand-Aviation-News.blogspot.com
www.Aviation-News-India.blogspot.com
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