Based on the attached sheet please do the below

. Perform financial analysis including vertical, horizontal and ratio analysis

Evaluate financial performance

Provide recommendation

December 31, 2016 December 31, 2017 December 31, 2018 (Canadian dollars in millions) Assets Current Cash and cash equivalents Short-term investments Total cash, cash equivalents and short-term investments Restricted cash Accounts receivable 642 3,162 $ 787 ### Long-term debt and finance leases Pension and other benefit liabilities Maintenance provisions Other long-term liabilities Deferred income tax Total liabilities Shareholders' Equity Share capital Contributed surplus Hedging reserve Retained earnings Total shareholders' equity Note 2p Note 18 4,707 ### ### ### Note 2q Note 18 ### ### 148 814 91 115 425 161 796 109 111 417 6,301 ### 465 9,252 ### 1,583 ### 318 ### 311 456 $ 15,114 17,782 $ 19,197 1,961 2,469 ### 671 $ 1,927 2,717 455 ### Note 4 Note 8 Note 5 Note 6 Note 10 ### $ 1,644 Note 18 Note 7 ### 444 9,729 1,969 404 311 39 5,099 ### Note 7 Note 8 Note 9 ### ### Note 10 $ 13,895 Note 11 5,448 2,592 ### 1,003 ### 167 49 14,360 $ 15,164 799 69 ### ### 2,554 798 75 3,160 ### ### 6,197 2,547 1,118 151 52 4,033 ### Non-controlling interests - Total equity Total liabilities and shareholders' equity 630 4,077 ### Promissory notes receivable Aircraft fuel inventory Spare parts and supplies inventory Prepaid expenses and other current assets Total current assets Deposits and other assets Property and equipment Pension assets Intangible assets Goodwill Deferred income tax Total assets Liabilities Current Accounts payable and accrued liabilities Advance ticket sales Current portion of long-term debt and finance leases Total current liabilities $ ### $ 15,114 17,782 $ 19,197 For the year ended December 31 (Canadian dollars in millions except per share figures) Operating revenues Passenger Cargo Other Total revenues Operating expenses Aircraft fuel Regional airlines expense Wages, salaries and benefits Airport and navigation fees Aircraft maintenance Depreciation, amortization and impairment Sales and distribution costs Ground package costs Aircraft rent Catering and onboard services Communications and information technology Special items Other Total operating expenses Operating income Non-operating income (expense) Foreign exchange gain (loss) Interest income Interest expense Interest capitalized Net financing expense relating to employee benefits Gain (loss) on financial instruments recorded at fair value Gain on sale and leaseback of assets Gain on debt settlements and modifications Loss on disposal of assets Other Total non-operating expense Income before income taxes Income tax (expense) recovery Net income Net income per share Basic earnings per share Diluted earnings per share 2018 2017 2016 $ 13,148 14,593 ### 708 ###951 $ 16,223 803 1,039 18,065 14,677 ### 2,927 3,969 2,842 2,873 964 1,003 1,080 807 602 518 433 294 1,506 ### 2,617 ### 2,671 ### 905 ### 938 ### 956 ### 770 ### 538 ### 503 ### 383 ### 254 ### 30 ### 1,389 16,891 13,332 1,174 ### ### 120 ### 60 ### (311) ### 36 ### (65) 23 ### ### 52 21 ###### (21) ### $ 876 $ 3.16 $ 3.10 ### 1,286 ### 743 2,029 7.44 7.31 (317) 108 (331) 35 (50) (1) 9 (188) (34) (769) 405 (238) $ 167 $ $ 0.61 0.60 For the year ended December 31 2016 (Canadian dollars in millions except per share figures) Cash flows from (used for) Operating Net income Adjustments to reconcile to net cash from operations Deferred income tax Depreciation, amortization and impairment Foreign exchange (gain) loss Gain on sale and leaseback of assets Gain on debt settlements and modifications Loss on disposal of assets Employee benefit funding less than expense Financial instruments recorded at fair value Change in maintenance provisions Changes in non-cash working capital balances Other Financing Proceeds from borrowings Reduction of long-term debt and finance lease obligations Shares purchased for cancellation Distributions related to aircraft special purpose leasing entities Issue of shares Financing fees Net cash flows used in financing activities Investing Short-term investments Additions to property, equipment and intangible assets Proceeds from sale of assets Proceeds from sale and leaseback of assets Other Net cash flows used in investing activities Effect of exchange rate changes on cash and cash equivalents Decrease in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year $ 876 839 (34) (19) 89 299 10 148 194 19 2,538 2017 2,029 (759) 984 (183) (52) (21) 237 (14) 125 342 50 2018 167 232 1,118 328 (9) 188 257 14 98 267 35 733 1,210 (71) (73) 9 (26) 5 (12) (998) (848) 5 740 (16) 11 293 47 (145) 787 642 (12) 642 630 (2,275) (94) (32) 2 (2) 137 (99) (2,921) 352 351 (9) (2,326) (17) 215 572 $ 787 Share capital Contributed surplus Hedging reserve Retained earnings (Canadian dollars in millions) January 1, 2017 (1) Net income Remeasurements on employee benefit liabilities Fuel derivatives designated as cash flow hedges, net Total comprehensive income Share-based compensation Shares issued (Note 11) Shares purchased and cancelled under issuer bid (Note 11) Reclassification of equity settled award to cash settled award (Note 2i) December 31, 2017 (1) Net income Remeasurements on employee benefit liabilities Fuel derivatives designated as cash flow hedges, net Total comprehensive income Share-based compensation Shares issued (Note 11) Shares purchased and cancelled under issuer bid (Note 11) December 31, 2018 $ 797 - $ 14 (12) $ $ 799 8 (9) 798 $ $ 83 (5) (9) $ 69 9 (3) 75 $ 3 - $ (3) ### - $ - 388 2,029 189 2,218 9 (59) (2) $ 2,554 167 503 670 (64) $ 3,160 (Canadian dollars in millions) Total shareholders' equity January 1, 2015 $ 1,271 2,029 189 (3) 2,215 9 9 (71) (11) $ 3,422 167 503 670 $ 9 5 (73) 4,033 Share Contributed capital surplus $ 835 $ 77 Net income - - Remeasurements on employee benefit liabilities - - Fuel derivatives designated as cash flow hedges, net - - Total comprehensive income - - Share-based compensation - 1 Shares issued (Note 11) 6 Shares purchased and cancelled under issuer bid (Note 11) Distributions December 31, 2015 (16) $ 825 (2) $ 76 Net income - - Remeasurements on employee benefit liabilities - - Fuel derivatives designated as cash flow hedges, net - - Total comprehensive income - - Share-based compensation - 8 Shares issued (Note 11) 3 Shares purchased and cancelled under issuer bid (Note 11) Distributions December 31, 2016 (31) $ 797 (1) $ 83 Hedging reserve - Retained earnings (deficit) ($ 2,113) Total shareholders' equity Noncontrolling interests ($ 1,201) $ 68 - 303 303 - 1,015 1,015 - (11) - (11) (11) - Total equity 5 ($ 1,133) 308 1,015 (11) 1,318 1,307 - (35) (34) - - - 4 - 4 - (47) - (46) (63) (46) ($ 11) 5 (63) - 1,312 (34) ($ 877) $ 13 $ 27 $ 40 - 876 876 - 876 - 412 412 - 412 14 - 14 1,288 1,302 - 1,302 - (12) (4) - (4) - - 2 - 2 - (63) - (27) (94) (27) - $ 1,219 14 14 $3 - $ 336 (94) $ 1,219 $