2023 Consolidated Financial Statements and Notes
AIR CANADA
2023 Consolidated Financial Statements and Notes
ancillary receivables are amounts due from other airlines for interline travel, travel agency payment processing
intermediaries or credit card processors associated with sales for future travel and are included in Accounts receivable
on the consolidated statement of financial position. Aeroplan Points are sold to program partners based on member
accumulations and which billings are generally settled monthly. Cargo and other accounts receivable relate to amounts
owing from customers, including from freight forwarders and interline partners for cargo and other services provided.
Contract costs include payment card fees, commissions and global distribution system charges on passenger tickets.
These costs are capitalized at time of sale and expensed at the time of passenger revenue recognition.
Airline passenger and cargo sales transactions rely on multiple information technology systems and controls to process,
record, and recognize a high volume of low value transactions, through a combination of internal information technology
systems and outsourced service providers, including industry clearing houses, global distribution systems, and other
partner airlines. Passenger sales and the ground portion of vacation packages are deferred and included in Current
liabilities. A portion of the passenger sale related to the equivalent ticket value of any Aeroplan Points issued is
separated and deferred in Aeroplan deferred revenue. The Advance ticket sales liability is recognized in revenue when
the related flight occurs or over the period of the vacation. Depending on the fare class, passengers may exchange
their tickets up to the time of the flight or obtain a refund, generally in exchange for the payment of a fee. The Corporation
performs regular evaluations on the advance ticket sales liability.
The practical expedient in IFRS 15 allows entities not to disclose the amount of the remaining transaction prices and
its expected timing of recognition for performance obligations if the contract has an original expected duration of one
year or less. The Corporation elects to use this practical expedient for the passenger travel performance obligation as
passenger tickets expire within a year if unused.
Air Canada offers and has issued and outstanding non-expiring travel credits. Customers have the ability to use the
travel credits within the next 12 months and the Corporation does not have an unconditional right to defer settlement
beyond the next 12 months. As such, the entire liability amount as at December 31, 2023 of $325 million (2022 - $401
million) related to these credits has been recorded in current liabilities even though some could be used after the next
12 months.
The following table presents financial information related to the changes in Aeroplan deferred revenue:
(Canadian dollars in millions)
2023
2022
Aeroplan deferred revenue, beginning of year
$
Proceeds from Aeroplan Points issued pursuant to program partner arrangements
3,409 $
1,678
3,452
1,253
Equivalent ticket value of Aeroplan Points issued
294
207
Aeroplan Points redeemed
(1,819)
(1,503)
Aeroplan deferred revenue, end of year
3,562
$
3,409
Proceeds from Points issued pursuant to Aeroplan program partner arrangements and the equivalent ticket value of
Points issued through travel are deferred until the Points are redeemed and the reward is provided to the member. The
Corporation expects the majority of the Points outstanding will be redeemed within three years.
67View entire presentation