Shares in Chorus Aviation open higher
June 1, 2011, Halifax - Shares in Chorus Aviation Inc. (TSX:CHR.B), the Halifax airline formerly known as Jazz Air, were up more than four per cent in early trading Wednesday on the Toronto Stock Exchange.
June 1, 2011 By The Canadian Press
The shares were up 20 cents to $5.03 after the regional airline reported late Tuesday that its latest quarterly profits fell but the carrier generated sharply higher revenues.
Chorus reported that its net profits fell to $14.7 million or 12 cents a share for the three months ended March 31 That compared with earnings of $16.4 million a year earlier.
The company also said it had been advised by Air Canada on Tuesday that the "that due to the high cost of fuel it will not exercise the option to operate swing CRJ-100 aircraft'' under an earlier agreement between the companies.
But Chorus said this development will not have a material impact on Jazz's business.
During the quarter, operating revenues rose nearly 25 per cent to $443 million from $355.4 million.
However, total operating expenses increased 24.1 per cent to $421.4 million from $339.5 million. Controllable costs increased by $18.4 million or 8.6 per cent, primarily attributable to the operation of flights on behalf of the Thomas Cook travel company.
Meanwhile, salaries, wages and benefits increased by $12.3 million due to wage and scale increases under new collective agreements, increased pension expense resulting from a revised actuarial valuation, and increased number of full time equivalent employees.
Chorus Aviation and its subsidiaries operate a regional airline providing passenger, charter and air cargo services to 55 destinations across Canada and 27 destinations in the United States utilizing a fleet of 134 aircraft. It also owns a stake in South American regional carrier Pluna.