Air Canada's parent, ACE Aviation Holdings, has reported a drop in third-quarter profit, in part because of a $102-million charge in connection with the redemption of Aeroplan miles issued before 2002.
ACE Aviation Holdings said Friday it made $103 million or 95 cents a share in the quarter, down from $271 million, or $2.33 a share, in the third quarter of 2005. The 2005 figures include $125 million in foreign exchange gains.
A $200-million IPO is in the works for Air Canada.
(Canadian Press)
Passenger revenues were up four per cent at $2.95 billion, with increases in all markets, except the Atlantic market. ACE said passenger revenues increased 14 per cent on U.S. transborder services.
The company said Air Canada's fuel expenses in the quarter rose $87 million, or 13 per cent year-over-year.
"I am pleased to report a solid third-quarter result with continued progress achieved in the implementation of ACE's business strategy," said Robert Milton, the company's chairman, president and CEO, in a statement.
Milton said regional carrier Jazz reported operating income of $39.2 million for the quarter and recorded $37 million in distributable cash to its investors.
Earlier this month, Air Canada filed for a $200-million initial public offering.
During a conference call, Milton and chief financial officer Brian Dunne declined to comment on the planned IPO, citing securities regulations, but Milton said the spinoff is expected to be completed by the end of the year.
ACE Aviation shares were off 72 cents at $38.40 in afternoon trading on the TSX.
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