ACE says it earned $236 million in the second-quarter of 2006, compared to $169 million in the same period last year. Passenger revenue was up 9 per cent or $188 million. Fuel expenses increased $101 million or 19 per cent over the same period last year. The profit also includes a $100 million gain on its sale of 3.25 million shares of US Airways.
"Air Canada's revenue performance remains positive with the airline reporting a $188 million or 9 per cent increase in revenues over the previous year," chairman, president and CEO Robert Milton said in a statement. "This growth was achieved without the benefit of domestic traffic and yield gains derived from Jetsgo's demise in March 2005, and despite the negative impact of a strong Canadian dollar on revenues in international and transborder markets."
Regional carrier Jazz earned $35.6 million in the quarter, and recorded over $33 million in distributable cash to investors.
ACE also said it plans to make an initial public offering for a minority stake in Air Canada later this year, and also intends to spin off Air Canada Technical Services, its maintenance and overhaul business. It may also offer additional shares in Aeroplan and Jazz.
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