Originally Posted by
Adam Smith
What's your basis for that? TATL + TPAC = 40% of AC's passenger revenues. AC doesn't disclose margins by region, but there's nothing to suggest that the margins are so much higher on those routes that they would make a majority of AC's profits.
Code:
AC 2019 passenger revenues ($MM)
Domestic: $5,233 30.4%
Transborder: $3,795 22.0%
TATL: $4,468 24.9%
TPAC: $2,449 13.6%
Other: $1,287 7.5%
(Other is essentially LatAm and Caribbean - South America and Sun destinations, in AC's parlance)
I don't disagree with that, as international flights (i.e. everything not domestic) are clearly a huge component, with domestic only being 30% of AC's business.
I've read that in past annual reports (Yes, I read them cover to cover, accounting and special items included) of the fact that the Trans-Pacific and Atlantic are the best ones for margin and most profitable. I do not know if you recall this, one of the main reasons Air Canada took over Canadian Airlines wayyyyyyy back was because they had a stronghold on the asia pacific routes and airport slots which were the most profitable.