Chorus Aviation says profit drops 35 per cent in fourth quarter, revenues grow

HALIFAX – Chorus Aviation Inc. (TSX:CHR.B) profits dropped 35 per cent in the fourth quarter as the airline was affected by higher aircraft maintenance expenses and foreign exchange losses.

The airline formerly known as Jazz said Wednesday that profits were $14.7 million, a decrease from $22.7 million a year earlier.

Adjusted profit fell 8.3 per cent to $17.9 million from $19.6 million for the three months ended Dec. 31, 2012.

Chorus said the results for its most recent quarter included booking a $3.8-million foreign exchange loss on the value of the Canadian dollar and a $1-million increase in the financing costs for the Bombardier Q400 aircraft, which consumes less fuel.

Aircraft maintenance expenses also rose by $7.9 million.

Quarterly operating revenue grew one per cent to $411.7 million from $407.7 million.

For the year, net income grew 48.4 per cent to $101.1 million from $68.1 million. Operating revenue increased one per cent to $1.71 billion from $1.66 billion.

Chorus operates Air Canada Express flights under a capacity purchase agreement with Air Canada and well as offers charter service under the Jazz banner.