Chorus Aviation reports fourth quarter profit
Feb. 21, 2012, Halifax - Chorus Aviation Inc. reported Monday an improvement in its quarterly results as it earned $22.7 million in its fourth quarter compared with a loss a year ago.
February 21, 2012 By The Canadian Press
The regional partner of Air Canada said the profit amounted to 18 cents per share for the fourth quarter compared with a loss of $11.9 million or 10 cents per share a year ago when the airline recorded a $8.9-million loss on derivatives.
Excluding unrealized foreign exchange gains and losses on long-term debt and finance leases, Chorus reported an adjusted profit of $19.6 million or 16 cents per share for the quarter compared with a loss of $12.4 million or 10 cents per share in the last three months of 2010.
Operating revenue increased to $407.7 million in operating revenue, which was up from $392.7 million a year ago.
Chorus said operating revenue was up due to higher costs for fuel, offset by lower airport and navigational fees and de-icing costs.
Passenger revenue, excluding pass-through costs, increased by $11.1 million due to higher U.S. dollar exchange rate, a $2.5-million increase in incentives earned under its deal with Air Canada and rate increases. These were offset by a decrease in billable block hours.
For the full year, Chorus reported a profit of $68.1 million or 55 cents per diluted share on $1.66 billion in revenue. That compared with a profit of $55.9 million or 46 cents per diluted share on $1.49 billion in revenue in 2010.
"We experienced a 22 per cent increase in net earnings year-over-year due to increased flying volumes and a decrease in our unit costs due to good cost control,'' Chorus president and chief executive Joseph Randell said in a statement.
Chorus operates the Jazz air service as well as Air Canada Express and Thomas Cook Canada, two other services.
Jazz runs scheduled passenger service for Air Canada to destinations in Canada and in the United States and handles Thomas Cook winter vacation charters to the Caribbean, Mexico and Central America as well as its own vacation charter business.