SafeFlyer
Topic Author
Posts: 561
Joined: Fri Jan 05, 2001 6:41 am

ACE (Air Canada) Q1 Results: Net And Oper. Loss

Sat May 12, 2007 7:07 am

ACE enterpises posted their first quarter results today after most other majors in North America. Despite all the cuts, AC is still loosing money. The first quarter is indeed ususally slow, but with all the strong load factors they've posted, it's hard to imagine what their breaking point is. Historically, Q1 profits have been dismal. Opinions?

Net loss: 72 million $
Operating loss: 20 million $

http://micro.newswire.ca/release.cgi...ey=1505117680&view=65938-0&Start=0
 
sunrisevalley
Posts: 5009
Joined: Tue Jul 06, 2004 3:26 am

RE: ACE (Air Canada) Q1 Results: Net And Oper. Loss

Sat May 12, 2007 9:14 am

In his report Montie Brewer stated ..quote

He also noted the new Embraer E190 fleet produced direct operating costs 20 per cent lower than the Airbus A319 fleet on a per trip basis.
 
worldtraveler
Posts: 3417
Joined: Tue Aug 05, 2003 6:18 am

RE: ACE (Air Canada) Q1 Results: Net And Oper. Loss

Sat May 12, 2007 9:49 am

transborder fares are still very cut throat. AC needs to quit trying to stimulate traffic and price for profitability.
 
sunrisevalley
Posts: 5009
Joined: Tue Jul 06, 2004 3:26 am

RE: ACE (Air Canada) Q1 Results: Net And Oper. Loss

Sat May 12, 2007 8:11 pm

Quoting WorldTraveler (Reply 2):
transborder fares are still very cut throat. AC needs to quit trying to stimulate traffic and price for profitability.

I was just looking at a YYZ-LAX fare at about $C700 compared to BUF-LAX at $C350. Big incentive to drive to BUF.!
 
scrubbsywg
Posts: 1095
Joined: Fri Mar 02, 2007 9:35 am

RE: ACE (Air Canada) Q1 Results: Net And Oper. Loss

Sat May 12, 2007 8:43 pm

the had a good pass sale on. i got an eastern NA pass where i flew YWG-LGA and YWG-BOS round trip for less than 700 All in. I was happy with that fare.
 
connies4ever
Posts: 3393
Joined: Sat Feb 25, 2006 10:54 pm

RE: ACE (Air Canada) Q1 Results: Net And Oper. Loss

Sun May 13, 2007 12:41 am

Load factors are one thing, yield is another.

BTW, AC itself posted a loss of $34M, last year $126M for the same period.
It was ACE (whichencompasses AC, Jazz, ACTS, and Aeroplan) which posted the $72M loss.

See: http://www.cbc.ca/money/story/2007/05/11/acedistribution.html

Accounting is a black art in any event.
Nostalgia isn't what it used to be.
 
multimark
Posts: 411
Joined: Sat Jul 29, 2006 1:53 pm

RE: ACE (Air Canada) Q1 Results: Net And Oper. Loss

Sun May 13, 2007 4:09 am

Quoting SunriseValley (Reply 1):
He also noted the new Embraer E190 fleet produced direct operating costs 20 per cent lower than the Airbus A319 fleet on a per trip basis.

Is that based on the flights when the junkle jets actually made it off the tarmac?
 
sunrisevalley
Posts: 5009
Joined: Tue Jul 06, 2004 3:26 am

RE: ACE (Air Canada) Q1 Results: Net And Oper. Loss

Sun May 13, 2007 4:31 am

Quoting Multimark (Reply 6):
s that based on the flights when the junkle jets actually made it off the tarmac?

By definition it must refer to actual operations. The E190 is not the first aircraft to have a "slow" EIS . I believe in other threads AC insiders have talked about other presently in service types which they characterized as Hangar Queens during
their EIS phase.
 
worldtraveler
Posts: 3417
Joined: Tue Aug 05, 2003 6:18 am

RE: ACE (Air Canada) Q1 Results: Net And Oper. Loss

Sun May 13, 2007 7:13 am

Quoting SunriseValley (Reply 3):
I was just looking at a YYZ-LAX fare at about $C700 compared to BUF-LAX at $C350.

you can file any fare you want but what the customer actually pays is something entirely different. Canadian fares are largely one-way which means it is very easy to get good discounts if you plan - which many businesses are able to do.
 
sunrisevalley
Posts: 5009
Joined: Tue Jul 06, 2004 3:26 am

RE: ACE (Air Canada) Q1 Results: Net And Oper. Los

Sun May 13, 2007 9:07 am

Quoting WorldTraveler (Reply 8):
you can file any fare you want but what the customer actually pays is something entirely different.

You may be right; I was checking Expedia for about Aug 8th and these are the numbers that I got.