Monday, Air Canada (AC-A.TO, AC-B.TO) posted May load factor of 79.5% on a consolidated basis with Jazz, a decline of 3.7 percentage points, compared to 83.2% reported in the year-ago period. For the month of May, System traffic fell 10.3% on a capacity reduction of 6.1% system wide.
Air Canada mainline reported a load factor of 81.0% in May 2009, down 3.3 percentage points from the previous year's load factor of 84.3%. The mainline carrier flew 10.4% fewer revenue passenger miles or RPMs in May 2009 than in the same month prior year on a capacity, measured in available seat miles, or ASMs, decrease of 6.7%.
Jazz, from which Air Canada purchases regional capacity, posted a load factor of 65.6% in May 2009, a decrease of 6.8 percentage points, compared to 72.4% in May 2008. Capacity rose by 0.2% from May 2008 and the carrier flew 9.2% fewer RPMs than in the same month last year.
Calin Rovinescu, President and Chief Executive Officer of Air Canada, said, "Despite downward pressure on travel demand due to the weakened economy and concerns over the H1N1 influenza virus, we were able to maintain a relatively stable performance during the month."
Last month, the company reported a first-quarter net loss of C$400 million or C$4.00 per share, wider than the previous year's loss of C$288 million or C$2.88 per share, hurt primarily by foreign exchange losses and lower revenues, as traffic and capacity declined year-on-year. Quarterly operating revenues dropped to C$2.39 billion from C$2.73 billion in the year-ago quarter. Passenger revenue decreased 13% due to a 10.9% decline in traffic and a 2.3% drop in yield.
During the first quarter, Air Canada's traffic, measured in RPM, were 10.98 billion, down 10.9% from 12.33 billion a year ago. Available seat miles, or ASM, declined 10.3% to 13.82 billion from 15.41 billion in the prior-year quarter. RASM was down 3%, primarily due to the decline in yield. Passenger load factor for the quarter was 79.5%, compared with 80% last year.
Among Air Canada's peers, WestJet Airlines Ltd. (WJA.TO) reported that traffic measured in revenue passenger miles, or RPMs, dropped 5.8% to 1.06 billion for the month of May 2009 from 1.13 billion in the same month a year ago, hurt by tough demand environment in its "shoulder" period. Capacity rose 1.2% for the month, while load factor dropped 5.4 points to 74.1% from 79.5% a year ago.
Air Canada closed Friday's trading session at C$1.40.
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