Chorus posts drop in earnings, but is upbeat

Chorus Aviation Inc., the primary regional affiliate of Air Canada, posted a drop in earnings in the first quarter, the company said Tuesday.

Net income for the quarter amounted to $14.4-million, or 14¢ a share, a decrease of $1.7-million from a year ago. Partly to blame was a spike in outlays for salaries, wages and benefits, which jumped by $12.3million over last year.

The company, which owns Jazz Aviation LP, a regional operator specializing in service to lower-density markets and during off-peak times, attributed the higher costs 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 required to allow for capacity growth," according to a release.

But the quarter remained a strong one, as "our team continues to deliver amongst the strongest quarterly results in the North American airline industry, and has done so since 2006," said Joseph Randell, Chorus's chief executive.

He pointed to delivery of the company's first Bombardier Q400 turboprop, which is to be part of a fleet of aircraft operating under the banner Air Canada Express.

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