Chorus Aviation, the parent company of Canadian regional airline Jazz Aviation, posted second-quarter net income of C$31.4 million ($25.4 million). Net profit was down 14% from net income of C$36.5 million in the 2014 June quarter, however. Second-quarter operating revenue lowered 4.2% year-over-year to C$400.1 million while expenses decreased 5.6% to C$362 million, producing an operating profit of C$38 million, up 10.8% over operating income of C$34.3 million in the prior-year period.
"I'm pleased with our performance and accomplishments in the second quarter as we continue to deliver solid returns to our shareholders and to strengthen Chorus," said Joseph Randell, President and Chief Executive Officer, Chorus. "Our strong operational performance captured 96.7 percent of the maximum available performance incentive payment under our recently amended Capacity Purchase Agreement ('CPA') with Air Canada, and we were pleased to reach a new long-term collective agreement with Jazz's dispatchers.”
"We continue to make significant progress on a number of fronts," continued Randell. "The implementation of our new CPA terms with Air Canada is transitioning as planned and delivering financial results relatively consistent with past performance. Cash flow remains strong. Our continuing investment in modernizing the Jazz fleet with the addition of six new Q400 NextGen aircraft by the end of this year and the acquisition of Voyageur increases shareholder value. The acquisition of Voyageur is accretive and is already demonstrating potential for future growth as it was the successful bidder for a new and expanded air ambulance contract with a long term customer. I thank the teams for their contribution to another successful quarter for Chorus.