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Ace Aviation posts $135M net loss for third quarter on fuel hedging and loonie

NEWS HIGHLIGHT

Ace Aviation posts 135M dollar net loss for
third quarter on fuel hedging and loonie

Soaring fuel costs and a weaker Canadian dollar dropped Air Canada parent ACE Aviation to a 135-million dollar third-quarter loss.


November 11, 2008
By The Canadian Press

Soaring fuel costs and a weaker Canadian dollar
dropped Air Canada parent ACE Aviation to a 135-million
dollar third-quarter loss.

And the holding company, which owns 75 per cent of Air Canada, says it's still deciding what to do with its stake in
the airline.

ACE, set up to oversee the airline's re-organization after
declaring bankruptcy, has been in the process of winding itself
down.

Its 135-million dollar loss reversed a 224-million dollar profit posted at
the same time in 2007.

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The company says the loss amounted to 3.86 dollars per share compared to
year-earlier earnings of 1.84 dollars per share.

The loss was mainly due to 93 million dollars in charges from fuel
hedging contracts and an 87-million dollar loss on foreign exchange.

Third-quarter revenue held relatively steady at 3.1 billion dollars
compared to 3 billion dollars during the same period last year.

THE CANADIAN PRESS