2023 Consolidated Financial Statements and Notes
AIR CANADA
2023 Consolidated Financial Statements and Notes
19. REVENUE
Disaggregation of revenue
The Corporation disaggregates revenue from contracts with customers according to the nature of the air transportation
services. The nature of services is presented as passenger, cargo and other revenue on its consolidated statement of
operations. The Corporation further disaggregates passenger and cargo air transportation service revenue according
to geographic market segments.
A reconciliation of the total amounts reported by geographic region for Passenger revenues and Cargo revenues on
the consolidated statement of operations is as follows:
Passenger Revenues
(Canadian dollars in millions)
Canada
U.S. Transborder
Atlantic
Pacific
Other
2023
2022
5,106
$
4,424
4,123
3,017
6,049
4,381
2,380
1,118
1,745
1,298
$
19,403
$
14,238
Cargo Revenues
(Canadian dollars in millions)
Canada
U.S. Transborder
Atlantic
Pacific
Other
2023
2022
$
94
$
114
45
51
432
556
222
409
131
136
$
924
$
1,266
Passenger and cargo revenues are based on the actual flown revenue for flights with an origin and destination in a
specific country or region. Atlantic refers to flights that cross the Atlantic Ocean with origins and destinations principally
in Europe, India, the Middle East and North Africa. Pacific refers to flights that cross the Pacific Ocean with origins and
destinations principally in Asia and Australia. Other passenger and cargo revenues refer to flights with origins and
destinations principally in Central and South America and the Caribbean and Mexico.
Other operating revenues are principally derived from customers located in Canada and consist primarily of revenues
from the sale of the ground portion of vacation packages, redemption of Aeroplan Points for non-air goods and services,
buy on board and related passenger ancillary services and charges, and other airline-related services.
Contract balances
The following table provides information about receivables, contract assets, and contract liabilities from contracts with
customers.
December 31, 2023
December 31, 2022
(Canadian dollars in millions)
Receivables, which are included in Accounts receivable
$
852
$
770
Contract costs which are included in Prepaid expenses and other current
assets
127
133
Contract liabilities - Advance ticket sales
4,341
4,104
Contract liabilities - Aeroplan deferred revenue (current and long-term)
Contract liabilities - Other deferred revenue (current and long-term)
3,562
3,409
900
1,046
Receivables include passenger, cargo and other receivables from contracts with customers. The Corporation sells
passenger tickets and related ancillary services via cash, credit card or other card-based forms of payment with
payment generally collected in advance of the performance of related transportation services. Passenger ticket and
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