Based on the data in the attached file, perform financial analysis including vertical, horizontal and ratio analysis and make recommendations

December 31, 2016 Revenue: Guest Other Operating expenses: Aircraft fuel Salaries and benefits Rates and fees Depreciation and amortization Sales and marketing Maintenance Aircraft leasing Other Employee profit share Earnings from operations Non-operating income (expense): Finance income Finance cost Gain (loss) on foreign exchange Gain (loss) on disposal of property and equipment Gain (loss) on derivatives Earnings before income tax Income tax expense (recovery): Current Deferred Net earnings Earnings per share: Basic Diluted December 31, 2017 3,556,941 565,918 4,122,859 765,867 854,056 617,573 350,484 356,745 209,226 178,445 291,024 59,342 3,682,762 440,097 3,822,045 680,275 4,502,320 950,043 935,145 644,763 403,021 384,452 203,227 165,902 330,014 46,793 4,063,360 438,960 16,618 (49,074) 7,402 (3,314) 4,504 (23,864) 416,233 19,626 (53,710) (4,877) 6,562 (2,426) (34,825) 404,135 133,055 (12,280) 120,775 295,458 58,645 61,912 120,557 283,578 2.46 2.45 2.44 2.42 December 31, 2018 4,483,529 249,933 1,231,632 999,381 691,293 429,906 440,292 232,053 139,703 398,038 15,937 4,578,235 155,227 29,421 (57,027) 2,966 4,049 1,246 (19,345) 135,882 14,812 29,605 44,417 91,465 0.80 0.80 Assets Current assets: Cash and cash equivalents Marketable securities Total cash, cash equivalents and marketable securities Restricted cash Accounts receivable Prepaid expenses, deposits and other Inventory Non-current assets: Property and equipment Intangible assets Other assets Total assets Liabilities and shareholders' equity Current liabilities: Accounts payable and accrued liabilities Advance ticket sales Deferred rewards program Non-refundable guest credits Current portion of maintenance provisions Current portion of long-term debt Non-current liabilities: Maintenance provisions Long-term debt Other liabilities Deferred income tax Total liabilities Share capital Equity reserves Hedge reserves Retained earnings Total shareholders' equity Total liabilities and shareholders' equity December 31, 2016 December 31, 2017 1,520,822 1,520,822 1,147,076 226,090 1,373,166 102,649 127,785 181,070 33,535 1,965,861 4,036,880 66,187 95,368 6,164,296 109,700 129,648 138,676 43,045 1,794,235 4,567,504 59,517 78,584 6,499,840 547,490 626,635 155,567 42,942 103,571 145,128 1,621,333 262,663 1,901,530 8,374 309,694 4,103,594 555,716 93,039 (11,003) 1,422,950 2,060,702 6,164,296 549,844 695,111 203,433 43,288 82,129 153,149 1,726,954 270,347 1,895,898 19,171 374,946 4,287,316 548,977 97,514 (1,902) 1,567,935 2,212,524 6,499,840 December 31, 2018 1,185,806 93,771 1,279,577 115,615 145,544 190,242 39,742 1,770,720 4,814,200 54,851 118,284 6,758,055 654,422 695,367 224,608 62,914 101,852 536,044 278,898 1,442,913 33,512 424,958 4,455,488 548,979 106,655 6,856 1,640,077 2,302,567 6,758,055 Operating activities: Net earnings Items not involving cash: Depreciation and amortization Change in maintenance provisions Amortization of transaction costs Amortization of hedge settlements Unrealized (gain) loss on derivatives (Gain) loss on derivatives (Gain) loss on disposal of property and equipment December 31, 2016 December 31, 2017 295,458 283,578 350,484 82,564 5,092 833 403,021 65,372 4,807 - (2,472) 3,314 4,059 (6,562) Share-based payment expense Deferred income tax expense (recovery) Unrealized foreign exchange (gain) loss Change in non-cash working capital Change in restricted cash Change in other assets Change in other liabilities Purchase of shares pursuant to compensation plans 18,432 (12,280) (4,498) 40,384 (34,076) 7,129 (2,486) (7,197) 19,050 61,912 2,496 237,663 (7,051) (1,296) 6,379 (4,784) Maintenance provision settlements (36,094) 704,587 (56,571) 1,012,073 (847,718) 4,660 (76,996) (881,069) 9,511 (48,855) - (231,293) (22,288) (942,342) (16,009) (1,167,715) 998,715 (157,193) (66,967) 186,796 (154,249) (64,886) (56,046) (14,026) 578,331 (63,188) (14,597) (200,441) 340,576 (356,083) (3,551) (17,663) 337,025 1,183,797 (373,746) 1,520,822 Investing activities: Aircraft additions Aircraft disposals Other property and equipment and intangible additions and disposals Purchases of marketable securities Maturities of marketable securities Change in non-cash working capital Financing activities: Increase in long-term debt Repayment of long-term debt Dividends paid Shares repurchased Cash interest paid Change in non-cash working capital Cash flow from/(used in) operating, investing and financing activities Effect of foreign exchange on cash and cash equivalents Net change in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 1,520,822 1,147,076 16,148 (118,014) 17,634 (97,911) Supplemental disclosure of operating cash flows Cash interest received Cash taxes paid, net December 31, 2018 91,465 429,906 50,637 4,250 (690) (4,049) 15,988 29,605 (7,592) 221,148 (5,916) (9,133) (96) (6,268) (50,675) 758,580 (524,272) 6,282 (121,708) (58,908) 201,415 9,793 (487,398) 41,131 (157,451) (63,845) (2,386) (61,410) (13,680) (257,641) 13,541 25,189 38,730 1,147,076 1,185,806 30,522 902 Share capital: Balance, beginning of year Issuance of shares pursuant to compensation plans Shares repurchased Equity reserves: Balance, beginning of year Share-based payment expense Issuance of shares pursuant to compensation plans Hedge reserves: Balance, beginning of year Other comprehensive income (loss) Retained earnings: Balance, beginning of year Dividends declared Shares repurchased Purchase of shares pursuant to compensation plans Net earnings Total shareholders' equity December 31, 2016 December 31, 2017 582,796 1,146 (28,226) 555,716 82,713 18,432 (8,106) 93,039 1,903 (12,906) (11,003) 1,292,581 (66,967) (97,926) (196) 295,458 1,422,950 2,060,702 555,716 10,131 (16,870) 548,977 93,039 19,050 (14,575) 97,514 (11,003) 9,101 (1,902) 1,422,950 (64,886) (73,447) (260) 283,578 1,567,935 2,212,524 December 31, 2018 548,977 602 (600) 548,979 97,514 15,988 (6,847) 106,655 (1,902) 8,758 6,856 1,614,266 (63,845) (1,786) (23) 91,465 1,640,077 2,302,567