HALIFAX — Jazz Air Income Fund (TSX:JAZ.UN) says its third-quarter profit was nearly 25 per cent lower than it was in the comparable period of 2009.
The affiliate of Air Canada (TSX:AC.A) said net income was $19.1 million in the three months ended Sept. 30, down from $26.9 million in the 2009 third quarter.
Revenues dropped slightly to $379.1 million, compared to $379.7 million year-over-year, mainly due to a lower U.S. dollar.
“I’m pleased with our performance in the third quarter,” chief executive Joseph Randell said in a news release on Monday.
“The activities of the last quarter were primarily focused on the execution of two significant events scheduled for this month: the start-up of our operations on behalf of Thomas Cook Canada, and our corporate conversion plan,” he said.
“These are important milestones that we anticipate will deliver value to our employees, owners and other stakeholders.”
Analysts’ estimates compiled by Thomson Reuters put revenue at $380 million for the third quarter.
The Halifax-based regional carrier said revenue earned from charter flights and other sources, such as groundhandling, decreased to $3.5 million from $3.6 million.
Total operating expenses increased to $352.2 million in the quarter, from $344.9 million a year ago, an increase of $7.3 million or 2.1 per cent.
Salaries, wages and benefits increased by $4.1 million due to wage and scale increases under new collective agreements.
Jazz Air recently converted from an income fund (TSX:JAZ.UN) into a corporation and will change its corporate name to Chorus Aviation Inc., although the planes will continued to be branded “Jazz.”
Jazz Air Income Fund was created as a separate company after Air Canada (TSX:AC.A) was restructured under court protection.
Jazz primarily sells its capacity to Air Canada although it recently signed a multi-year deal to operate a six-plane fleet on behalf of Thomas Cook, a vacation supplier.
Units is Jazz Air were at $5.65, down five cents, in late afternoon trading on the Toronto Stock Exchange.