Air Canada reports loss in first quarter as fuel costs rise
May 5, 2017, 9:43 pm
#32
Join Date: Jul 2013
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That's actually a lot harder.
Right now, they're required to show the price that everyone must pay.
But between seat selection and preferred seat selection, 1 bag 2 bag 3 bag, etc. you end up with a matrix of prices for every fare. And I'm not sure that's any better than just not showing it.
Right now, they're required to show the price that everyone must pay.
But between seat selection and preferred seat selection, 1 bag 2 bag 3 bag, etc. you end up with a matrix of prices for every fare. And I'm not sure that's any better than just not showing it.
May 5, 2017, 9:50 pm
#33
Join Date: Jun 2009
Location: Calgary
Programs: BA Silver
Posts: 771
Oh no. All I can see after these published numbers are:
1) Higher fares (YQ charges+Bags+seat selection etc)
2) More tightly crammed seats
3) Higher costs for AP redemptions
4) Further cuts to Altitude FF
I must admit I don't understand the numbers, just remembering when Oil was closed to and over $100 pb.
1) Higher fares (YQ charges+Bags+seat selection etc)
2) More tightly crammed seats
3) Higher costs for AP redemptions
4) Further cuts to Altitude FF
I must admit I don't understand the numbers, just remembering when Oil was closed to and over $100 pb.
May 5, 2017, 10:02 pm
#34
Moderator, Air Canada; FlyerTalk Evangelist
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This is really frightening though..........Air Canada said its net loss was $37 million, or 14 Canadian cents per share, in the quarter, compared with a net income of $101 million, or 35 Canadian cents per share, a year earlier.
Net loss = EXPENSES +/- INCOME minus $37 million.
This is not sustainable year over year. AC needs to increase revenue, cut costs to close a $37 million dollar shortfall for the first 3 months of the year. If the rest of the year is like this they will lose $148 million dollars.
Net loss = EXPENSES +/- INCOME minus $37 million.
This is not sustainable year over year. AC needs to increase revenue, cut costs to close a $37 million dollar shortfall for the first 3 months of the year. If the rest of the year is like this they will lose $148 million dollars.
Profits are volatile, especially in a cyclical industry like the airline business. To simply say this is unsustainable and multiply the amount by four for the rest of the year is ignorant and asinine. There's a lot more to the health of the business than one quarter's net income.
Fuel costs were $244MM higher in that period. Even ignoring the $63MM due to higher volumes, that's still $181MM, or over 1.3x more than the difference in net income.
It's simplistic to blame everything on fuel prices, since there are other things that moved against AC and some that moved in its favour in that time, but the pay for top executives doesn't come anywhere close to the impact that fuel prices have. Calin made $9MM in 2016, Ben Smith $4MM, and progressively less down the line.
May 5, 2017, 10:07 pm
#35
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@Adam Smith what have I told you about bringing logic to a FT fight? Clearly Exec bonuses and salaries exceed fuel costs etc.
May 5, 2017, 10:09 pm
#36
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@Adam Smith what have I told you about bringing logic to a FT fight? Clearly Exec bonuses and salaries exceed fuel costs etc.
May 5, 2017, 10:39 pm
#39
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May 5, 2017, 10:48 pm
#40
Join Date: Mar 2008
Posts: 812
lol @Adam Smith knows I read it. He also knows I was mocking him for saying TL;DR but still responding to the post in full.
May 6, 2017, 8:22 am
#43
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Goal being to get lowest price search engines to put you first on the list. Competitors who unbundle always come out winning.
AC was among the last finding that had to play the same game. Blame goes straight to people who buy "the cheapest" without doing their homework or paying close attention to what they are actually buying, or not.
Then you can make a case, why should I subsidize low fare folks who travel with the kitchen sink? The fuel costs of people who weigh twice as much as I do...
May 6, 2017, 12:38 pm
#44
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May 6, 2017, 8:58 pm
#45
Join Date: Sep 2014
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Personally, I prefer it when companies dont start to mess with numbers and "adjust for this" "adjust for that".
Better report the true numbers, and then let me do the math wizardry if I need to factor some stuff out.