Air Canada PROFIT

[golden hawk]

Air Canada reports Q4 profit of $15M
Last Updated Wed, 09 Mar 2005 14:05:41 EST
CBC News

MONTREAL - ACE Aviation Holdings, the parent company of Air Canada, is crediting higher passenger traffic and a strong Canadian dollar for turning around a huge fourth-quarter loss in 2003 into a profit of $15 million in the fourth-quarter of 2004.

The Q4 profit works out to 17 cents a share. Air Canada lost $768 million ($6.39 a share) in the same quarter in 2003, largely because of huge reorganizing and restructuring costs.

The profit for the most recent quarter included a $98 million in foreign exchange gains, compared with a loss of $7 million a year earlier.

Operating revenues in the quarter rose four per cent to $2.06 billion. Revenue passenger miles also rose four per cent, while its load factor (the percentage of available seats filled with paying passengers) climbed 4.4 percentage points to 75.9 per cent – a record for the fourth quarter.

Air Canada said it managed to make a profit despite soaring fuel bills, which grew by 49 per cent in the year – an extra cost of $142 million.

"Given the current difficult operating environment, featuring low North American yields and record high fuel prices, I am satisfied with these financial results, " said chair Robert Milton in a statement.

On an operating basis, the company said it posted an operating loss of $3 million in the fourth quarter of 2004, compared to a loss of $77 million in the fourth quarter of 2003.

This was the first full quarterly earnings report since the airline emerged from creditor protection last September.

Shares in ACE Aviation Holdings were down 30 cents to $32.50 in early afternoon trading on the TSX.

[Wild Cat]

Love to see them words "profits profits profits"

[sherlock]

bet Milton and his croonies get a big bonus this year.
bet they would'nt dream of refusing it and saying, "no, we did'nt earn it. Let's give the bonus to the workers out in the field, they're the ones who really earned it."
yeah I still believe in santa too I'll buy that bridge too...

[shitdisturber]

bet Milton and his croonies get a big bonus this year.
bet they would'nt dream of refusing it and saying, "no, we did'nt earn it. Let's give the bonus to the workers out in the field, they're the ones who really earned it."
yeah I still believe in santa too I'll buy that bridge too...

How many million did he and his cronies get for taking the company into bankruptcy protection again? Showing a profit should be worth at least twice that. Of course that'd be the end of the profit but hey you can't have everything.

[ice ice baby]

Have they being hiring bookeepers from Enron again

[Blastor]

Air Canada's parent company reports quarterly profit

Allan Swift
Canadian Press


Wednesday, March 09, 2005

MONTREAL (CP) -- ACE Aviation Holdings Inc., parent firm of Air Canada, posted a $3-million operating loss in its first full quarterly report since Air Canada emerged from bankruptcy-court protection last September.

However, the company said Wednesday its performance improved dramatically compared with a year earlier and it managed to achieve a net profit thanks to currency exchange gains.

The company also said it surpassed its financial targets for 2004, taking advantage of better markets and lower costs to overcome higher fuel prices.

ACE Aviation had a net profit of $15 million in the quarter ended Dec. 31 versus a year-ago loss of $780 million. The fourth quarter of 2003 included $560 million in reorganization and restructuring items as the airline attempted to stave off bankruptcy.

The 2004 fourth quarter was boosted by $98 million in foreign exchange gains, compared with a loss of $7 million for currency exchange the same period a year earlier.

On an operating basis, before items like taxes, interest, aircraft rent and non-recurring items, ACE's loss of $3 million compares favourably with the $77-million operating loss a year earlier.

"Our huge accomplishment in the quarter can be recognized in our near break-even operating results, besting all our major North American competitors and beaten only by a few U.S. low-cost carriers,'' chief executive Robert Milton said in a conference call.

The operating improvement was largely due to an increase of $86 million, or five per cent, in transportation revenues as a result of higher traffic, ACE said.

Net earnings for the quarter ended Dec. 31 amounted to 17 cents a share diluted, compared with $6.39 per share lost a year earlier. Analysts' consensus forecast was for a loss of 60 cents a share, according to Thomson One Analytics.

One analyst explained that the main difference was the foreign exchange gains, which contributed 64 cents a share in net profits.

Net results for all of 2004 were not available, although operating earnings were $1.146 billion.

Milton said this surpassed the company's target of $1.1 billion for the year, "in spite of an unprecedented and unanticipated increase in crude price'' which added $79 million to fuel costs over what was expected.

The CEO said the company is still committed to its target of operating earnings of $1.6 billion for 2005, even though its assumed oil price of $35 US a barrel for the year will likely be much higher.

He said the extra fuel costs will be offset by higher revenues and lower costs thanks to cost-cutting measures taken during the restructuring and since.

Analyst Jacques Kavafian of Research Capital Corp. said the fourth-quarter figures were good and in line with his expectations, minus the one-time effect of foreign exchange.

"More important, the market is really very strong,'' said Kavafian.

"We're pretty upbeat about the outlook; we're looking for earnings of $2.67 a share for the year.''

He has a 12-month target on Air Canada stock at $50.

Shares (TSX:ACE.B) were off 65 cents at $32.15 in midday trading Wednesday.

The fourth-quarter gains were also offset by a rise in navigation fees of $30 million, about 18 per cent, in the quarter and by higher landing and terminal rates, primarily in Toronto.

"If there was ever a better example of how out of control the fees imposed by government-mandated monopolies have become, this really is it,'' said Milton, a strong critic of airport and navigation fees.

"I look forward to the progress that the minister of transport will be making on this file in the coming weeks.''

Milton did not say much about plans to issue shares for some of its divisions, such as the Aeroplan loyalty points program.

"ACE is examining a range of alternatives to maximize the value of its investment in Aeroplan for the benefit of all shareholders,'' Milton said.

The company also announced that Frank McKenna, former premier of New Brunswick, has resigned from the ACE board effective March 1 as a result of his appointment as Canadian ambassador to the United States.

© Canadian Press 2005

[Duster]

On an operating basis, before items like taxes, interest, aircraft rent and non-recurring items, ACE's loss of $3 million compares favourably with the $77-million operating loss a year earlier.

Maybe I'm missing something - how can you have an operating loss and still declare a profit - I'm no accountant but it seems strange to me.

[The Dude]

On an operating basis, before items like taxes, interest, aircraft rent and non-recurring items, ACE's loss of $3 million compares favourably with the $77-million operating loss a year earlier.

Maybe I'm missing something - how can you have an operating loss and still declare a profit - I'm no accountant but it seems strange to me.

tax credits from previous losses, currency exchange (fixed costs in US$, higher Canadian $ = exchange gains of $98mil in this case)

[Navajo-dude]

Enough profit to pay for Celine's bulimia therapy.....