Air Canada warns of quarterly loss in preliminary results
Apr 26, 2013, 7:56 pm
#91
Original Member
Join Date: May 1998
Location: Vancouver, Canada
Posts: 6,222
Apr 30, 2013, 8:53 am
#92
Join Date: Apr 2010
Location: YYZ
Posts: 1,225
goodbye AC
I am now flying BUF YHZ for less money and greater comfort than I would on AC. As a former SE I have seen all FF appreciation from AC stop so I left.
I fly AC only to burn off my remaining AE points and then no more.
I am 1K with UA and although they are not perfect they do a great deal for me when flights change or weather causes delays. This is something completely foreign to AC, helping pax get around flight troubles.
There is no justification for the tango flex fare gap other than Execs don't care about pax loyalty and they want to gut the FF program completely by making benefits horribly expensive.
I fly AC only to burn off my remaining AE points and then no more.
I am 1K with UA and although they are not perfect they do a great deal for me when flights change or weather causes delays. This is something completely foreign to AC, helping pax get around flight troubles.
There is no justification for the tango flex fare gap other than Execs don't care about pax loyalty and they want to gut the FF program completely by making benefits horribly expensive.
May 3, 2013, 6:30 am
#93
A FlyerTalk Posting Legend
Original Poster
Join Date: May 2002
Location: YEG
Programs: HH Silver
Posts: 56,444
http://www.theglobeandmail.com/repor...ticle11695514/
Air Canada confirmed its earlier report of a tough first quarter, as demand for higher fare seats waned.
The results were better than last year year, however. Air Canada lost $260-million in the quarter, or 95 cent a share, compared with a loss of $274-million, 99 cents a share in the same period a year ago.
The winter months can typically be tough, with higher costs associated with delays and deicing due to the weather. Yet signs of revenue pressures is a concern, say analysts.
Air Canada confirmed its earlier report of a tough first quarter, as demand for higher fare seats waned.
The results were better than last year year, however. Air Canada lost $260-million in the quarter, or 95 cent a share, compared with a loss of $274-million, 99 cents a share in the same period a year ago.
The winter months can typically be tough, with higher costs associated with delays and deicing due to the weather. Yet signs of revenue pressures is a concern, say analysts.
May 3, 2013, 8:08 am
#94
formerly mattking2000
Join Date: Nov 2012
Location: DXB
Programs: BA|AC|AZ|SPG|H|FPC
Posts: 1,184
Really, even with all the scamcharges (most) of the general public is coughing up without a second thought?
I'll echo what everyone else here has said -- the migration of business fliers away from AC appear to be materializing.
I'll echo what everyone else here has said -- the migration of business fliers away from AC appear to be materializing.
May 3, 2013, 8:40 am
#95
FlyerTalk Evangelist
Join Date: Jun 2003
Location: YYC
Posts: 23,797
May 5, 2013, 2:52 pm
#96
Join Date: Sep 2009
Location: YOW/YUL/YYZ
Posts: 270
around $500 cheaper
lowest flex fare around $3,200/$3,300
lowest CX PE around $2,700
May 5, 2013, 7:29 pm
#98
Join Date: Dec 2007
Location: Body in Downtown YYZ, heart and mind elsewhere
Programs: UA 50K, refugee from AC E50K, Marriott Lifetime Plat
Posts: 5,132
May 5, 2013, 9:13 pm
#99
Join Date: Jun 1999
Location: YVR
Programs: ACSEMM QRGold SPGLifetimePlat FairmontPlat HyattD AMEXCenturion SerenaPlat TalkBoard Founding Member
Posts: 8,963
I don't believe this is what is happening. I really think it is the much larger gap from Tango to anything higher along the Altitude tier changes. The gap up to a higher fare as been astronomical at times lately.
May 6, 2013, 7:56 am
#100
Join Date: Feb 2005
Posts: 7,156
When AC increased the price of the aerolotto ticket and took away the ability to attain any meaningful Attitude status, it changed the buying behaviour.
May 7, 2013, 9:41 am
#101
Join Date: Jul 2001
Location: YYC
Programs: AC Basic, UA MP Gold, Marriott Gold Elite, SPG Gold, Amex Platinum
Posts: 3,008
The crowd here is quite ready to jump on AC for mopre leisure vs business flyers. It would have helped to fully quote the AC PR, the explanation of higher proportion of leisure passengers is due to the timing of Easter. 2012 Easter was in Q2 while 2013 Easter is Q1. Once 1/2 year results come out, things will be back to normal.
FYI, WS has the reported the same issue (negative effects on quarter due to position of Easter) for about the past 10 years.
FYI, WS has the reported the same issue (negative effects on quarter due to position of Easter) for about the past 10 years.
“We are pleased with the continued year-over-year growth in traffic, and have experienced the same soft patch reported by other North American carriers in April,” Mr. Saretsky said.
He attributed the decline in April to the timing of Easter and Passover this year, the cancellation of the Thomas Cook capacity purchase commitments it was unable to resell so late in the season, and the loss of one-time benefit from Air Canada’s labour uncertainty during the month a year ago.
“We are however seeing stronger bookings in May and June,” Mr. Saretesky said
He attributed the decline in April to the timing of Easter and Passover this year, the cancellation of the Thomas Cook capacity purchase commitments it was unable to resell so late in the season, and the loss of one-time benefit from Air Canada’s labour uncertainty during the month a year ago.
“We are however seeing stronger bookings in May and June,” Mr. Saretesky said
Bolded parts are mine. Almost the same thing was said by Calin R during the AC Q1 news release.
Last edited by WR Cage; May 7, 2013 at 9:41 am Reason: quote attribution
May 7, 2013, 4:31 pm
#102
Join Date: Dec 2010
Location: YYC
Programs: AC SE
Posts: 316
May 7, 2013, 4:35 pm
#103
Join Date: Mar 2008
Posts: 812
May 7, 2013, 6:44 pm
#105
Join Date: May 2013
Posts: 2
Pacific yields up...
Some of the comments here suggest that some think the reduction in premium revenue was on the Pacific. I don't understand why anyone would think that since AC's Transpacific yields and LFs were up in Q1. It was by far the best revenue performer for AC.
The yield reduction was the result of pricing pressure on Transborder and South America. The US airlines added significant capacity (close to 10 %) yoy in Q3/Q4 last year which is when and why the South American yields were down around 5% yoy. Delta's CEO stated in their Q1 conference call that he expects those yields to improve by the 2nd half of the year and the US carriers are projecting minimal increases in capacity on all their international routes so that problem for AC will probably be solved with time.
The transborder market is the result of Porter and WJ increasing capacity to the US NE. This will probably weigh on yields until 2014 (less growth forecasted yoy) so for now I guess we can enjoy slightly better pricing/choice on those routes.
Your comparison of AC vs. Cathay pricing probably just means AC is already close to fully booked on those flights. While Cathay may not be. I purchased a ticket in March on Cathay (SGN-HKG-YYZ) due to it being cheaper. AC was 5000, Cathay was 1800. Of course AC was fully booked in the back one way making them much more expensive because I would have been forced to buy exec of one of the legs. Unfortunately I'm an ECON traveller
haha.
And surprisingly I preferred the AC Econ service over Cathay. Very minimal water service in the back which to me is a must on a 15 hr flight. I don't like being forced to call on FA to get a glass of water. On AC, they perform water services much more often.
The yield reduction was the result of pricing pressure on Transborder and South America. The US airlines added significant capacity (close to 10 %) yoy in Q3/Q4 last year which is when and why the South American yields were down around 5% yoy. Delta's CEO stated in their Q1 conference call that he expects those yields to improve by the 2nd half of the year and the US carriers are projecting minimal increases in capacity on all their international routes so that problem for AC will probably be solved with time.
The transborder market is the result of Porter and WJ increasing capacity to the US NE. This will probably weigh on yields until 2014 (less growth forecasted yoy) so for now I guess we can enjoy slightly better pricing/choice on those routes.
Your comparison of AC vs. Cathay pricing probably just means AC is already close to fully booked on those flights. While Cathay may not be. I purchased a ticket in March on Cathay (SGN-HKG-YYZ) due to it being cheaper. AC was 5000, Cathay was 1800. Of course AC was fully booked in the back one way making them much more expensive because I would have been forced to buy exec of one of the legs. Unfortunately I'm an ECON traveller
haha. And surprisingly I preferred the AC Econ service over Cathay. Very minimal water service in the back which to me is a must on a 15 hr flight. I don't like being forced to call on FA to get a glass of water. On AC, they perform water services much more often.