Consolidated Statements of Earnings For the years ended December 31 (Stated in thousands of Canadian dollars, except per share amounts) Note 2018 20170 Revenue: Guest 3 4,483,529 4,238,926 Other 249,933 267,729 4,733,462 4,506,655 Operating expenses: Aircraft fuel 1,231,632 950,043 Salaries and benefits 999,381 935,545 Rates and fees 691,293 644,763 Sales and marketing 440,292 393,582 Depreciation and amortization 7,8 429,906 403,021 Maintenance 232,053 203,227 Aircraft leasing 139,703 165,902 Other 398,038 331,014 Employee profit share 15,937 46,793 4,578,235 4,073,890 Earnings from operations 155,227 432,765 Non-operating income (expense): Finance income 29,421 19,626 Finance cost 15 (57,027) (53,710) Gain (loss) on foreign exchange 2,966 (4,877) Gain on disposal of property and equipment 4,049 6,562 Gain (loss) on derivatives 1,246 (2,426) (19,345 (34,825) Earnings before income tax 135,882 397,940 Income tax expense: Current 11 14,812 58,645 Deferred 29,605 60,237 44,417 118,882 Net earnings 91,465 279,058 Earnings per share: Basic 14 0.80 2.40 Diluted 14 0.80 2.38 The accompanying notes are an integral part of the consolidated financial statements. (i) Certain 2017 numbers have been restated for the adoption of IFRS 15. See Note 2 for further discussion.Consolidated Statements of Comprehensive Income For the years ended December 31 (Stated in thousands of Canadian dollars) 2018 2017(0) Net earnings 91,465 279,058 Items to be reclassified to net earnings: Other comprehensive income (loss), net of tax: Net unrealized gain (loss) on foreign exchange derivatives() 15,924 (10,336) Reclassification of net realized (gain) loss on foreign exchange derivatives(") (4,107) 5,385 Net unrealized gain (loss) on interest rate derivatives() (420) 5,181 Reclassification of net realized (gain) loss on interest rate derivatives() (338) 2,009 Net unrealized gain (loss) on cross-currency swap derivatives(") (1,991) 6,903 Reclassification of net realized gain on cross-currency swap derivatives(vil) (310) (41) 8,758 9,101 Total comprehensive income 100,223 288,159Consolidated Statements of Changes in Equity For the years ended December 31 (Stated in thousands of Canadian dollars) Note 2018 2017(1) Share capital: Balance, beginning of year 12 548,977 555,716 Issuance of shares pursuant to compensation plans 12 602 10,131 Shares repurchased 12 (600) (16,870) 548,979 548,977 Equity reserves: Balance, beginning of year 97,514 93,039 Share-based payment expense 12 15,988 19,050 Issuance of shares pursuant to compensation plans (6,847) (14,575) 106,655 97,514 Hedge reserves: Balance, beginning of year (1,902) (11,003) Other comprehensive income 8,758 9,101 6,856 (1,902) Retained earnings: Balance, beginning of year 1,614,266 1,473,801 Dividends declared 13 (63,845) (64,886) Shares repurchased 12 (1,786) (73,447) Purchase of shares pursuant to compensation plans (23) (260) Net earnings 91,465 279,058 1,640,077 1,614,266 Total shareholders' equity 2,302,567 2,258,855 The accompanying notes are an integral part of the consolidated financial statements. (1) Certain 2017 numbers have been restated for the adoption of IFRS 15. See Note 2 for further discussion.Consolidated Statements of Financial Position At December 31 (Stated in thousands of Canadian dollars) Note 2018 2017(0) Assets Current assets: Cash and cash equivalents 1,185,806 1,147,076 Marketable securities 93,771 226,090 Total cash, cash equivalents and marketable securities 1,279,577 1,373,166 Restricted cash 6 115,615 109,700 Accounts receivable 3,19 145,544 152,492 Prepaid expenses, deposits and other 19 190,242 138,676 Inventory 39,742 43,045 1,770,720 1,817,079 Non-current assets: Property and equipment 4,814,200 4,567,504 Intangible assets 54,851 59,517 Other assets 118,284 78,584 Total assets 6,758,055 6,522,684 Liabilities and shareholders' equity Current liabilities: Accounts payable and accrued liabilities 654,422 546,505 Advance ticket sales 695,367 659,953 Deferred rewards program 224,608 185,991 50 WWWb Non-refundable guest credits 62,914 58,575 Current portion of maintenance provisions 101,852 82,129 Current portion of long-term debt 536,044 153,149 2,275,207 1,686,302 Non-current liabilities: Maintenance provisions 278,898 270,347 Long-term debt 1,442,913 1,895,898 Other liabilities 33,512 19,171 Deferred income tax 424,958 392,111 Total liabilities 4,455,488 4,263,829 Shareholders' equity: Share capital 12 548,979 548,977 Equity reserves 106,655 97,514 Hedge reserves 6,856 (1,902) Retained earnings 1,640,077 1,614,266 Total shareholders' equity 2,302,567 2,258,855 Total liabilities and shareholders' equity 6,758,055 6,522,684 The accompanying notes are an integral part of the consolidated financial statements. (i) Certain 2017 numbers have been restated for the adoption of IFRS 15. See Note 2 for further discussion