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Jazz Air reports 3Q net profit of $19.1m

Jazz Air Income Fund announced the third quarter 2010 financial results, including a net income of $19.1 million.

"I’m pleased with our performance in the third quarter," said Joe Randell, president and chief executive officer of Jazz Air. "The activities of the last quarter were primarily focused on the execution of two significant [upcoming] events: the start-up of our operations on behalf of Thomas Cook Canada, and our corporate conversion plan. These are important milestones that we anticipate will deliver value to our employees, owners and other stakeholders."

Operating revenue in the quarter was $379.1 million, compared with $379.7 million in 3Q09, a decrease of $0.6 million or 0.2%. Jazz Air puts the decrease down to a lower US dollar exchange rate, a 1.1% reduction in billable block hours, and a reduction in the mark-up charged by Jazz under the CPA (which became effective on 1 August 2009), offset by rate increases made pursuant to the CPA, a 0.7% increase in departures, and an increase in pass-through costs.

Other revenue earned from charter flights and other sources, such as ground handling, decreased from $3.6 million to $3.5 million.

Total operating expenses increased from $344.9 million to $352.2 million, an increase of $7.3 million or 2.1%. Salaries, wages and benefits increased by $4.1 million due to wage and scale increases under new collective agreements, and increased pension expense resulting from a revised actuarial valuation; offset by decreased incentive compensation expense. Aircraft maintenance expense decreased by $2.0 million.

Non-operating expenses amounted to $0.7 million, representing a decrease of $0.8 million.

The net income of $19.1 million for 3Q10 was 24.6% down on 3Q09’s figure of $25.3 million.

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