2023 Consolidated Financial Statements and Notes slide image

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 66
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