 MONTREAL, January 7, 2009 - For the month of December, Air Canada today reported a record load factor of 81.7 per cent on a consolidated basis with Jazz, versus 78.8 per cent in December 2007, an increase of 2.9 percentage points. System traffic decreased 6.6 per cent on a capacity reduction of 9.9 per cent system wide.
For the full year 2008, load factor was 81.4 per cent on a consolidated basis with Jazz, a record for the fifth consecutive year, versus 80.6 percent in 2007, an increase of 0.8 percentage points.
Air Canada mainline reported a load factor of 82.7 per cent in December 2008 compared to 79.3 per cent in December 2007; an increase of 3.4 percentage points. The mainline carrier flew 6.2 per cent fewer revenue passenger miles (RPMs) in December 2008 than in December 2007 on a capacity decrease of 10.0 per cent.
Jazz, from which Air Canada purchases regional capacity, reported a load factor of 72.1 per cent, a decrease of 1.4 percentage points from 73.5 per cent in December 2007. Capacity decreased by 9.1 per cent from December 2007 and the carrier flew 10.8 per cent fewer RPMs than in the previous December.
"With an 81.4 per cent load factor for the full year, Air Canada and Jazz reported a fifth consecutive year of record load factors in 2008 and once again this December we surpassed previous years' records for the month, said Montie Brewer, President and Chief Executive Officer. "These traffic results reflect effective capacity management that, combined with the decline in fuel prices, positions Air Canada well to manage through these challenging economic times. In addition, in December we concluded financing arrangements that could provide funding of more than half a billion dollars. These agreements represent significant steps forward in the implementation of our strategy to improve short term and longer term liquidity during the current economic downturn.
Financing Agreements Concluded in December 2008
As previously announced, during the month of December Air Canada concluded financing arrangements providing funding of up to C$503 million. The financing arrangements consist of: a secured revolving credit facility of up to C$100 million with the Canadian Imperial Bank of Commerce (CIBC) with draw downs being subject to certain conditions; a series of agreements for secured financings with General Electric Capital Corporation (GECC) and its affiliates providing up to US$195 million (approximately C$238) upon fulfillment of certain conditions and completion of certain documents; a secured financing transaction with Calyon New York Branch and Norddeutsche Landesbank Girozentrale for a US$78 million (approximately C$95 million) loan maturing in December 2013; and an agreement with Aeroplan under which it accelerated approximately C$70 million in payments to Air Canada to December 31, 2008 as well as provided commercial terms that are beneficial to both parties. |
