Jazz Air CRJ700. Photo: Courtesy, Bombardier
Jazz Air parent Chorus Aviation reported second-quarter net income of C$22.9 million ($22.3 million), up 35.3% from a C$16.9 million profit in the year-ago period.
“Cash flow remains strong, and we remain focused on strengthening our foundation, improving our cost competitiveness and building the core value for all our stakeholders,” president and CEO Joseph Randell said.
Revenue increased 6% to C$426.3 million while expenses rose 3.1% to C$389.7 million, producing an operating profit of C$36.6 million, up 52.6% from a C$24 million operating profit in the prior-year quarter.
Chorus Aviation, the holding company for Jazz Aviation, took delivery of additional Bombardier Q400s in the quarter. It added the last three Q400s from the original order of 15. Jazz placed an order for six Q400 NextGen aircraft during the Farnborough Airshow (ATW Daily News, July 12).
Randell said Chorus is consolidating its heavy maintenance operations in Halifax by next summer to further improve operating efficiencies. “By increasing the number of newer aircraft in the Jazz fleet, the requirement for heavy maintenance is reduced. While we recognize the impact of this decision is difficult for a number of our employees—it is the right direction to take if we are to become more cost competitive and remain relevant in this industry as the competitive landscape continues to change.”
Chorus Aviation’s stake in Uruguay-based Pluna included a write-down of C$16.4 million due to the takeover of the failing carrier by the Uruguayan government. Pluna ceased operations in early July (ATW Daily News, July 3).
Also during the second quarter, Chorus and Air Canada negotiated new rates under their capacity purchase agreement for 2012 through 2014.