HALIFAX, NS, Sept. 4, 2025 /CNW/ – Chorus Aviation Inc. (“Chorus”) (TSX: CHR) today announced it has entered into an agreement to sell three Dash 8-400 aircraft and has closed the previously-announced acquisition of Elisen & Associates Inc.
Chorus expects to realize net proceeds of approximately US $20 million from the sale of the three Dash 8-400 aircraft. Subject to customary conditions to closing, the sales are expected to close by the end of this year as each of the aircraft exits the fleet in accordance with the Capacity Purchase Agreement between Jazz Aviation LP and Air Canada.
About Chorus Aviation Inc.
Chorus is a holding company which owns the following principal operating subsidiaries: Jazz Aviation, the largest regional operator in Canada and provider of regional air services under the Air Canada Express brand; Voyageur Aviation, a leading provider of specialty charter, aircraft modifications, parts provisioning and in-service support services; Cygnet Aviation Academy, an industry leading accredited training academy preparing pilots for direct entry into airlines; and Elisen & Associates, a leading provider of aerospace engineering and certification services. Together, Chorus’ subsidiaries provide services that encompass every stage of an aircraft’s lifecycle, including: contract flying; aircraft refurbishment, engineering and certification services, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning; aircraft acquisition and leasing; and pilot training.
Net income of $32.4 million compared to a net loss of $180.6 million for Q2 2024.
Net income from continuing operations1 of $32.4 million compared to $8.5 million for Q2 2024.
Adjusted Earnings available to Common Shareholders2 of $17.2 million compared to $1.9 million for Q2 2024, due to the sale of the RAL business and improved financial results attributable to growth at Voyageur and lower corporate costs.
Adjusted Earnings available to Common Shareholders of $0.66 per Common Share, basic, compared to $0.07 for Q2 2024.
Adjusted EBITDA of $51.3 million compared to $50.5 million for Q2 2024.
Free Cash Flow of $34.6 million compared to $28.2 million for Q2 2024.
Leverage Ratio of 1.5 compared to 1.4 at December 31, 2024, due to additional cash held at December 31, 2024 as a result of a $58.9 million prepayment of revenue relating to January 2025.
HALIFAX, NS, Aug. 5, 2025 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced its second quarter 2025 financial results.
“Our second quarter results reflect solid performance on all key financial metrics and concrete actions to return capital to shareholders, while re-investing in Chorus’ growth and high-potential capabilities,” said Colin Copp, President and Chief Executive Officer, Chorus. “Additionally, we announced an agreement in July to acquire Montreal-based Elisen & Associates Inc., a leading provider of aerospace engineering and certification services as a strategic move to support future growth.”
“Voyageur’s continued strong performance, combined with consistent earnings from Jazz’s capacity purchase agreement (CPA) with Air Canada, contributed to these results,” added Mr. Copp. “The second quarter also included an important milestone for Voyageur, as it delivered the first of two Dash 8-300 Fireswift aerial firefighting aircraft on behalf of its customer, Metrea, a global, US-based defense and national security company. We are excited about the opportunity in this area.”
“The initiation of a quarterly dividend that we intend to grow over time with our business was a key step Chorus took to return shareholder value. We also completed $27.2 million in share buybacks so far this year to the end of June through our normal course issuer bid (NCIB) and a substantial issuer bid (SIB),” said Mr. Copp. “To further strengthen our balance sheet, Chorus today announced it will redeem its outstanding Series B Debentures in the principal amount of $28.7 million.”
Second Quarter Summary
In the second quarter of 2025, Chorus reported Adjusted EBITDA from continuing operations of $51.3 million, an increase of $0.9 million compared to the second quarter of 2024 primarily due to:
an increase in Voyageur’s parts sales, contract flying and MRO activity; and
a decrease in stock-based compensation of $2.4 million partially due to the recognition of the immediate vesting of certain restricted share units in Q2 2024 related to the sale of the RAL business and the change in fair value of the Total Return Swap offset by an increase in the Common Share price; and
a decrease in general administrative expenses primarily attributable to lower overhead costs; partially offset by
a decrease in aircraft leasing revenue under the CPA of $3.4 million primarily due to a change in lease rates on certain aircraft partially offset by a higher US dollar exchange rate; and
a decrease in capitalization of major maintenance overhauls on owned aircraft of $1.4 million.
Adjusted Net Income from continuing operations was $17.2 million for the quarter, an increase of $6.4 million compared to the second quarter of 2024 primarily due to:
a $0.9 million increase in Adjusted EBITDA as previously described;
a decrease in net interest costs of $5.3 million primarily related to the repayment of the Series A Debentures at maturity, the partial repurchase of the Series B Debentures and Series C Debentures and the absence of any draw in the current quarter under the Operating Credit Facility; and
a decrease of $2.3 million in income tax expense primarily due to an income tax recovery of $3.1 million related to non-capital loss carrybacks resulting from taxes paid on the redemption of the Preferred Shares; partially offset by
an increase in depreciation expense of $1.2 million primarily attributable to capital expenditures; and
a negative change in foreign exchange of $0.8 million.
Net income from continuing operations was $32.4 million, an increase of $24.0 million compared to the second quarter of 2024 primarily due to:
the previously noted increase in Adjusted Net Income of $6.4 million; and
a positive change in net unrealized foreign exchange of $17.6 million.
Adjusted Earnings available to Common Shareholders from continuing operations was $17.2 million for the quarter, an increase of $15.3 million compared to the second quarter of 2024 primarily due to:
the previously noted increase in Adjusted Net Income of $6.4 million; and
the elimination of Preferred Share dividends of $9.0 million due to the redemption of the Preferred Shares.
Year-to-Date Summary
Chorus reported Adjusted EBITDA from continuing operations of $108.2 million for the six months ended June 30, 2025, an increase of $3.7 million compared to the same prior year period primarily due to:
an increase in Voyageur’s parts sales, contract flying and MRO activity;
a decrease in stock-based compensation of $2.7 million due to the recognition of the immediate vesting of certain restricted share units in Q2 2024 related to the sale of the RAL business and the change in fair value of the Total Return Swap offset by an increase in the Common Share price; and
a decrease in general administrative expenses primarily attributable to lower overhead costs; partially offset by
a decrease in aircraft leasing revenue under the CPA of $4.2 million primarily due to a change in lease rates on certain aircraft partially offset by a higher US dollar exchange rate; and
a decrease in capitalization of major maintenance overhauls on owned aircraft of $2.8 million.
Adjusted Net Income from continuing operations of $32.6 million, an increase of $9.2 million compared to the same prior year period primarily due to:
a $3.7 million increase in Adjusted EBITDA as previously described; and
a decrease in net interest costs of $10.8 million primarily related to the repayment of the Series A Debentures at maturity, the partial repurchase of the Series B Debentures and Series C Debentures and the absence of any draw in the current quarter under the Operating Credit Facility; partially offset by
an increase in depreciation expense of $2.3 million primarily attributable to capital expenditures;
a negative change in foreign exchange of $1.9 million; and
an increase of $1.2 million in income tax expense primarily due to the increase in EBT, adjusted to remove non-taxable unrealized foreign exchange gains and certain non-deductible expenses partially offset by an income tax recovery of $3.1 million related to non-capital loss carrybacks resulting from taxes paid on the redemption of Preferred Shares.
Net income from continuing operations of $51.4 million, an increase of $37.5 million compared to the same prior year period primarily due to:
the previously noted increase in Adjusted Net Income of $9.2 million; and
a positive change in net unrealized foreign exchange of $28.3 million.
Adjusted Earnings available to Common Shareholders from continuing operations was $32.6 million, an increase of $27.0 million compared to the same prior year period primarily due to:
the previously noted increase in Adjusted Net Income of $9.2 million; and
the elimination of Preferred Share dividends of $17.8 million due to the redemption of the Preferred Shares.
About Chorus Aviation Inc. Chorus is a holding company which owns the following principal operating subsidiaries: Jazz Aviation, the largest regional operator in Canada and provider of regional air services under the Air Canada Express brand; Voyageur Aviation, a leading provider of specialty charter, aircraft modifications, parts provisioning and in-service support services; and Cygnet Aviation Academy, an industry leading accredited training academy preparing pilots for direct entry into airlines. Together, Chorus’ subsidiaries provide services that encompass every stage of an aircraft’s lifecycle, including: contract flying; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning; aircraft acquisition and leasing; and pilot training.
HALIFAX, NS, Aug. 5, 2025 /CNW/ – Jazz Aviation LP (‘Jazz’) is pleased to be acknowledged as a 5-Star Diversity, Equity and Inclusion Employer for 2025 by Canadian HR Reporter.
“We’re incredibly proud to be named a 5-Star Employer for diversity, equity and inclusion. This recognition reflects the passion and effort our teams put into creating a workplace where everyone feels welcomed, valued and supported,” said Doug Clarke, President, Jazz. “Diversity, equity and inclusion are part of how we work, grow and succeed together.”
The CHRR 5-Star Diversity, Equity and Inclusion Employers awards, presented by Canadian HR Reporter, recognize Canadian organizations with outstanding DEI programs and initiatives. These awards highlight workplaces that foster inclusive cultures where employees feel a sense of belonging, support and the ability to thrive. The awards are based on an extensive evaluation process that includes employee feedback and assessment of DEI practices, programs and policies.
About Jazz Aviation LP
Jazz is the largest regional airline in Canada and the primary operator of Air Canada Express flights to 72 destinations across North America. In addition to today’s recognition as a 5-Star Diversity, Equity and Inclusion Employer, Jazz was recently announced as part of Canada’s Best Diversity Employers, one of Atlantic Canada’s and Nova Scotia’s Top Employers, and recognized with an Award of Excellence in the Public Transportation category at Canada’s Safest Employers. Jazz has previously been honoured with an Indigenous Reconciliation award from the Government of Canada for outstanding commitment to reconciliation with Indigenous peoples. These achievements, along with Jazz’s proven track record of industry leadership and exceptional customer service, create and deliver value to stakeholders. Jazz is a wholly owned subsidiary of Chorus Aviation Inc. (TSX: CHR). Flyjazz.ca
HALIFAX, NS, July 21, 2025 /CNW/ – Chorus Aviation Inc. (TSX: CHR) today announced it has entered into an agreement to acquire Elisen & Associates Inc. (“Elisen”), a leading provider of aerospace engineering and certification services based in Montreal.
Founded in 1997 by Stephane Durand and Taif Rahman, Elisen has built a strong reputation for its work on complex engineering projects spanning commercial, business and rotary aircraft modifications, defence projects and sustainable aviation development. Elisen’s projects include support and development work on the Airbus A220, Bell helicopters and Bombardier, Gulfstream and Lear special mission aircraft, among others. Mr. Durand and Mr. Rahman will continue to lead Elisen following the closing of the transaction.
“Elisen is a leading engineering firm located at the core of Montreal’s aerospace community. Acquiring Elisen will position us to grow our defence and specialized MRO capabilities by adding valuable expertise and industry relationships,” said Colin Copp, President and Chief Executive Officer, Chorus. “We are delighted that Stephane and Taif will continue to lead Elisen and look forward to welcoming the entire Elisen team.”
“We have had expressions of interest from several companies over the years, but none provides the alignment of culture, values and strategic vision that Chorus offers,” stated Elisen Co-President, Mr. Rahman.
“We are excited to work with the Chorus team to pursue a broader set of opportunities together,” added Elisen Co-President, Mr. Durand.
The transaction is expected to close prior to the end of this year, conditional upon the completion of certain regulatory notifications and the satisfaction of other customary conditions to closing. The transaction will be paid for using available cash and is not expected to have a material impact on Chorus’ consolidated revenue, earnings or balance sheet.
About Chorus Aviation Inc.
Chorus is a holding company which owns the following principal operating subsidiaries: Jazz Aviation, the largest regional operator in Canada and provider of regional air services under the Air Canada Express brand; Voyageur Aviation, a leading provider of specialty charter, aircraft modifications, parts provisioning and in-service support services; and Cygnet Aviation Academy, an industry leading accredited training academy preparing pilots for direct entry into airlines. Together, Chorus’ subsidiaries provide services that encompass every stage of an aircraft’s lifecycle, including: contract flying, aircraft refurbishment, engineering, modification, repurposing and transition; aircraft and component maintenance, disassembly, and parts provisioning; aircraft acquisition and leasing; and pilot training.
Chorus Class A Variable Voting Shares and Class B Voting Shares trade on the Toronto Stock Exchange under the trading symbol ‘CHR’. Chorus’ 6.00% Convertible Senior Unsecured Debentures due June 30, 2026 and 5.75% Senior Unsecured Debentures due June 30, 2027 trade on the Toronto Stock Exchange under the trading symbols ‘CHR.DB.B’ and ‘CHR.DB.C’ respectively. For further information on Chorus, please visit www.chorusaviation.com.
Net income of $18.9 million compared to $12.3 million for Q1 2024.
Net income from continuing operations of $18.9 million compared to $5.4 million for Q1 2024.
Adjusted Earnings available to Common Shareholders of $15.4 million compared to $3.7 million for Q1 2024 was due to the positive impacts of the sale of the RAL business and improved financial results primarily related to increased parts sales, contract flying, MRO and other revenue.
Adjusted Earnings available to Common Shareholders of $0.57 per Common Share, basic, compared to $0.13 for Q1 2024.
Adjusted EBITDA of $56.9 million compared to $54.0 million for Q1 2024.
Free Cash Flow of $40.6 million compared to $30.7 million for Q1 2024.
Leverage Ratio of 1.6 compared to 1.4 at December 31, 2024. The increase was a result of additional cash held at December 31, 2024 due to a $58.9 million prepayment of revenue related to January 2025.
Parts sales, contract flying, MRO and other revenue of $39.1 million compared to $28.5 million for Q1 2024 primarily driven by Voyageur.
HALIFAX, NS, May 6, 2025 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced its first quarter 2025 financial results.
“Consistent with our plan, the first quarter results show significant improvements resulting from our sale of the regional aircraft leasing (RAL) business,” said Colin Copp, President and Chief Executive Officer, Chorus. “The results also reflect strong growth at Voyageur, primarily driven by part sales, consistent earnings from Jazz’s capacity purchase agreement (CPA) with Air Canada as well as our corporate cost reductions.”
“At the same time, we took steps to deliver on our commitment to return capital to shareholders through a substantial issuer bid (SIB) for $25.0 million in value of Chorus’ shares,” added Mr. Copp. “This initiative is in addition to $53.0 million in share buy-backs since we launched our normal course issuer bid (NCIB) program in 2022.”
“These positive outcomes and our focus on returning capital to shareholders reflect the increased strength of our balance sheet, and a commitment to enhance value for our shareholders,” said Mr. Copp.
First Quarter Summary
In the first quarter of 2025, Chorus reported Adjusted EBITDA from continuing operations of $56.9 million, an increase of $2.8 million compared to the first quarter of 2024 primarily due to:
an increase in Voyageur’s parts sales, contract flying and MRO activity; and
a decrease in general administrative expenses primarily attributable to lower overhead costs; partially offset by
a decrease in capitalization of major maintenance overhauls on owned aircraft of $1.5 million; and
a decrease in aircraft leasing revenue under the CPA of $0.7 million primarily due to a change in lease rates on certain aircraft partially offset by a higher US dollar exchange rate.
Adjusted Net Income from continuing operations was $15.4 million for the quarter, an increase of $2.8 million compared to the first quarter of 2024 primarily due to:
a $2.8 million increase in Adjusted EBITDA as previously described; and
a decrease in net interest costs of $5.5 million primarily related to the repayment of the Series A Debentures at maturity, the partial repurchase of the Series B Debentures and Series C Debentures and the absence of any draw in the current quarter under the Operating Credit Facility; partially offset by
an increase of $3.5 million in income tax expense;
an increase in depreciation expense of $1.1 million primarily attributable to capital expenditures; and
a negative change in foreign exchange of $1.0 million.
Net income from continuing operations was $18.9 million, an increase of $13.5 million compared to the first quarter of 2024 primarily due to:
the previously noted increase in Adjusted Net Income of $2.8 million; and
a positive change in net unrealized foreign exchange of $10.7 million.
Adjusted Earnings available to Common Shareholders from continuing operations was $15.4 million for the quarter, an increase of $11.7 million compared to the first quarter of 2024 primarily due to:
the previously noted increase in Adjusted Net Income of $2.8 million; and
the elimination of Preferred Share dividends of $8.8 million due to the redemption of the Preferred Shares.
About Chorus Aviation Inc.
Chorus is a holding company which owns the following principal operating subsidiaries: Jazz Aviation, the largest regional operator in Canada and provider of regional air services under the Air Canada Express brand; Voyageur Aviation, a leading provider of specialty charter, aircraft modifications, parts provisioning and in-service support services; and Cygnet Aviation Academy, an industry leading accredited training academy preparing pilots for direct entry into airlines. Together, Chorus’ subsidiaries provide services that encompass every stage of an aircraft’s lifecycle, including: contract flying, aircraft refurbishment, engineering, modification, repurposing and transition; aircraft and component maintenance, disassembly, and parts provisioning; aircraft acquisition and leasing; and pilot training.
HALIFAX, NS, April 15, 2025 /CNW/ – Jazz Aviation LP (‘Jazz’) is thrilled to announce its recognition as one of Nova Scotia’s Top Employers for 2025 by Mediacorp Canada Inc., marking the fourteenth year in a row.
“We are proud to be a North American airline operator based in Nova Scotia and to support our over 850 employees here,” said Doug Clarke, President, Jazz. “This recognition reflects our commitment to creating a workplace where our team can thrive. Being part of this community is a privilege we deeply value.”
This designation highlights employers in Nova Scotia who excel in creating outstanding workplaces. The evaluation includes the quality of physical workplaces, work and social atmospheres, health, financial and family benefits, vacation and time off, employee communications, performance management, training and skills development, and community involvement.
About Jazz Aviation LP
Jazz is the largest regional airline in Canada and the primary operator of Air Canada Express flights to 72 destinations across North America. In addition to today’s recognition as one of Nova Scotia’s Top Employers, Jazz was recently announced as part of Canada’s Best Diversity Employers, one of Atlantic Canada’s Top Employers, and recognized with an Award of Excellence in the Public Transportation category at Canada’s Safest Employers. Jazz has previously been honoured with an Indigenous Reconciliation award from the Government of Canada for outstanding commitment to reconciliation with Indigenous peoples. These achievements, along with Jazz’s proven track record of industry leadership and exceptional customer service, create and deliver value to stakeholders. Jazz is a wholly owned subsidiary of Chorus Aviation Inc. (TSX: CHR). Flyjazz.ca
HALIFAX, NS, March 25, 2025 /CNW/ – Jazz Aviation LP (“Jazz”) is proud to announce its recognition as one of Atlantic Canada’s Top Employers for the 14th consecutive year. This achievement highlights Jazz’s unwavering commitment to fostering an exceptional workplace culture and supporting its employees throughout the region.
With deep roots in Atlantic Canada, Jazz serves as the primary regional operator for Air Canada, employing over 900 Atlantic Canadians across locations in all four Atlantic provinces. The company remains dedicated to providing a positive, inclusive, and rewarding work environment that encourages growth and innovation.
“We are honoured to be named one of Atlantic Canada’s Top Employers for the 14th year in a row,” said Doug Clarke, President, Jazz. “This recognition is a testament to the dedication of our employees, who make Jazz a great place to work. We continue to focus on collaboration, respect, and continuous improvement to maintain our position as an employer of choice.”
Mediacorp Canada Inc.’s Atlantic Canada’s Top Employers award recognizes organizations that lead their industries in offering exceptional workplaces. Employers are evaluated on criteria including physical workplace, work and social atmosphere, health, financial and family benefits, vacation and time off, employee communications, performance management, training and skills development, and community involvement.
About Jazz Aviation LP
Jazz is the largest regional airline in Canada and the primary operator of Air Canada Express flights to 69 destinations across North America. In addition to today’s recognition as one of Atlantic Canada’s Top Employers, Jazz was recently announced as part of Canada’s Best Diversity Employers and recognized with an Award of Excellence in the Public Transportation category at Canada’s Safest Employers. Jazz has previously been honoured with an Indigenous Reconciliation award from the Government of Canada for outstanding commitment to reconciliation with Indigenous peoples. These achievements, along with Jazz’s proven track record of industry leadership and exceptional customer service, create and deliver value to stakeholders. Jazz is a wholly owned subsidiary of Chorus Aviation Inc.
HALIFAX, NS, Feb. 25, 2025 /CNW/ – Jazz Aviation LP (‘Jazz’) is proud to be recognized once again as one of Canada’s Best Diversity Employers by Mediacorp Canada Inc., marking the fourteenth consecutive year of this prestigious distinction.
“Diversity, equity, inclusion and accessibility are at the core of our workplace culture, and we remain committed to fostering an environment where all employees feel valued and supported,” said Doug Clarke, President, Jazz. “I am proud to continue this legacy, ensuring that Jazz remains a leader in workplace diversity.”
Canada’s Best Diversity Employers recognizes the nation’s top employers for their exceptional workplace diversity and inclusiveness programs. The competition highlights successful diversity initiatives in key areas, including programs for employees from five groups: women; members of visible minorities; persons with disabilities; Indigenous peoples; and lesbian, gay, bisexual, and transgender/transsexual (LGBT) peoples.
About Jazz Aviation LP
Jazz is the largest regional airline in Canada and the primary operator of Air Canada Express flights to 68 destinations across North America. In addition to today’s recognition as one of Canada’s Best Diversity Employers, Jazz has been honoured with an Indigenous Reconciliation award from the Government of Canada for outstanding commitment to reconciliation with Indigenous peoples, named a Top Employer for Atlantic Canada and Nova Scotia, and recognized with an Award of Excellence in the Public Transportation category at Canada’s Safest Employers. These achievements, along with Jazz’s proven track record of industry leadership and exceptional customer service, create and deliver value to stakeholders. Jazz is a wholly owned subsidiary of Chorus Aviation Inc. (TSX: CHR). Flyjazz.ca
Completed the sale of the RAL business with net proceeds of US $607.7 million in cash.
Leverage Ratio improved to 1.4 at December 31, 2024 from 3.3 at December 31, 2023.
Net loss from continuing operations of $15.8 million.
Adjusted Earnings available to Common Shareholders of $28.5 million.
Adjusted Earnings available to Common Shareholders of $1.04 per Common Share, basic.
Adjusted EBITDA of $211.6 million.
Free Cash Flow of $118.8 million.
Parts sales, contract flying, MRO and other revenue of $128.3 million primarily driven by Voyageur.
Q4 Financial Highlights:
Net loss of $6.6 million.
Net loss from continuing operations of $49.4 million.
Adjusted Earnings available to Common Shareholders of $10.6 million.
Adjusted Earnings available to Common Shareholders of $0.39 per Common Share, basic.
Adjusted EBITDA of $52.7 million.
Free Cash Flow of $27.5 million.
Parts sales, contract flying, MRO and other revenue of $35.9 million primarily driven by Voyageur.
Share Consolidation
Effective February 5, 2025, Chorus consolidated its Common Shares on the basis of one post-consolidation Common Shares for every seven pre-consolidation Common Shares (the “Share Consolidation”). Unless otherwise stated, all per-Common Share figures in this new release are reported on a post-Share Consolidation basis.
HALIFAX, NS, Feb. 19, 2025 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced its fourth quarter and year-end 2024 financial results.
“We took a significant step this past year to strengthen Chorus and unlock value with the sale of the RAL business in December,” said Colin Copp, President and Chief Executive Officer, Chorus. “Combined with the significant reduction in debt and corporate financings, reduced interest and preferred dividend costs, the transaction positions Chorus for improved earnings and cash flows, as we renew our focus on growing our aviation services business.”
“Our fourth quarter delivered strong and consistent results that were in line with our expectations,” said Mr. Copp. “The Jazz team continued to deliver strong cash flows under its CPA with Air Canada, while Voyageur grew its position within the special mission, parts sales and specialty MRO spaces, delivering on its growth targets for the year. Cygnet, our pilot aviation academy, made great progress welcoming its seventh cohort recently and graduating pilots who moved into careers with Jazz as first officers, as it also builds key industry partnerships for future growth.”
“Since the sale of the RAL business, we have accelerated the pace of share repurchases under our NCIB, investing $10.0 million during this period,” said Mr. Copp. “With a stronger balance sheet and cash flows post the RAL sale, we are monitoring market conditions and evaluating opportunities to best enhance shareholder returns. As we move forward, we are committed to driving long-term value for our shareholders while strengthening our overall business.”
Fourth Quarter Summary
In the fourth quarter of 2024, Chorus reported Adjusted EBITDA from continuing operations of $52.7 million, a decrease of $2.0 million compared to the fourth quarter of 2023 primarily due to:
a decrease in aircraft leasing revenue under the CPA of $2.4 million primarily due to a change in lease rates on certain aircraft; and
an increase in general administrative expenses primarily attributable to increased operations; and
an increase in stock-based compensation of $1.4 million due to an increase in the Common Share price offset by the change in fair value of the Total Return Swap; partially offset by
an increase in Voyageur’s parts sales, contract flying and MRO activity;
an increase in capitalization of major maintenance overhauls on owned aircraft of $2.4 million; and
an improvement in the Controllable Cost Guardrail of $2.0 million.
Adjusted Net Income from continuing operations was $10.6 million for the quarter, in line compared to the fourth quarter of 2023 primarily due to:
a $2.0 million decrease in Adjusted EBITDA as previously described; and
an increase in depreciation expense of $4.0 million primarily attributable to a change in depreciation estimates on certain aircraft and capital expenditures; partially offset by
a positive change in foreign exchange of $3.2 million;
a decrease of $1.7 million in income tax expense; and
a decrease in net interest costs of $0.8 million, inclusive of a $3.7 million interest charge related to the acceleration of the amortization of the deferred financing costs related to the Series B Debentures and Series C Debentures.
Net loss from continuing operations increased $77.7 million compared to the fourth quarter of 2023 primarily due to:
a realized foreign exchange loss on the settlement of Preferred Shares of $31.3 million;
a reduction in realized foreign exchange gains related to the settlement of intercompany loans in 2023 of $26.4 million;
a negative change in net unrealized foreign exchange of $13.8 million;
impairment provisions of $10.5 million primarily related to planned part-out of Voyageur’s non-operational owned aircraft;
interest accretion on Preferred Shares of $10.4 million; and
an increase in employee separation program costs of $1.0 million; partially offset by
a realized foreign exchange gain of $13.7 million related to US dollar denominated cash held between the dates December 6, 2024 and December 31, 2024 being the dates Chorus received the net proceeds from the Transaction and the redemption of the Preferred Shares, respectively; and
an increase in income tax recovery on adjusted items of $2.2 million.
Annual Summary
Chorus reported Adjusted EBITDA from continuing operations of $211.6 million for the year ended December 31, 2024, a decrease of $10.0 million compared to the same prior year period primarily due to:
a decrease in aircraft leasing revenue under the CPA of $15.7 million primarily due to a change in lease rates on certain aircraft;
an increase in stock-based compensation of $3.6 million due to an increase in the Common Share price offset by the change in fair value of the Total Return Swap; and
an increase in general administrative expenses primarily attributable to increased operations; partially offset by
an increase in capitalization of major maintenance overhauls on owned aircraft of $6.4 million;
an improvement in the Controllable Cost Guardrail of $4.0 million; and
an increase in Voyageur’s parts sales, contract flying and MRO activity.
Adjusted Net Income from continuing operations of $46.3 million, a decrease of $5.7 million compared to the same prior year period primarily due to:
a $10.0 million decrease in Adjusted EBITDA as previously described; and
an increase in depreciation expense of $14.4 million primarily attributable to a change in depreciation estimates on certain aircraft and capital expenditures; partially offset by
a decrease of $11.9 million in income tax expense; decrease in net interest costs of $3.7 million, inclusive of a $3.7 million interest charge related to the acceleration of the amortization of the deferred financing costs related to the Series B Debentures and Series C Debentures.; and
a positive change in net foreign exchange of $2.9 million.
Net loss from continuing operations of $15.8 million, an increase of $117.4 million compared to the same prior year period primarily due to:
the previously noted decrease in Adjusted Net Income of $5.7 million;
a realized foreign exchange loss on the settlement of Preferred Shares of $31.3 million;
the Defined Benefit Pension Revenue recognized in 2023 of $29.9 million (Air Canada agreed to compensate Jazz for the one-time impact of the wage increase on the Jazz defined benefit pension plan);
a reduction in realized foreign exchange gains related to the settlement of intercompany loans in 2023 of $26.4 million;
a negative change in net foreign exchange of $26.0 million;
impairment provisions of $10.5 million primarily related to planned part-out on Voyageur non-operational owned aircraft;
interest accretion on Preferred Shares of $10.4 million; and
an increase in employee separation program costs of $1.1 million; partially offset by
a realized foreign exchange gain of $13.7 million related to US dollar denominated cash held between the dates December 6, 2024 and December 31, 2024 being the dates Chorus received the net proceeds from the Transaction and the redemption of the Preferred Shares, respectively; and
an increase in income tax recovery on adjusted items of $10.3 million.
Portfolio of Aircraft Leasing under the CPA
Current fleet of 48 wholly-owned aircraft and five spare engines
Current net book value of $793.4 million
Future contracted lease revenue US $385.4 million
Current weighted average fleet age of 8.5 years
Current weighted average remaining lease term of 4.9 years
Long-term debt of $347.3 million (US $241.4 million)
100% of debt has a fixed rate of interest
Current weighted average cost of borrowing of 3.32%
About Chorus Aviation Inc. Chorus is a Canadian company focused on aviation services businesses. Our operating subsidiaries are: Jazz Aviation, the largest regional operator in Canada and provider of regional air services under the Air Canada Express brand; Voyageur Aviation, a leading provider of specialty charter, aircraft modifications, parts provisioning and in-service support services; and Cygnet Aviation Academy, an industry leading accredited training academy preparing pilots for direct entry into airlines. Together, Chorus’ subsidiaries provide services that encompass every stage of an aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning; and pilot training.
HALIFAX, NS, Dec. 6, 2024 /CNW/ – Chorus Aviation Inc. (TSX: CHR) (“Chorus“) today announced the completion of the previously announced sale of its Regional Aircraft Leasing (RAL) segment (the “Transaction“).
“Chorus is pleased to announce the completion of the sale of its RAL segment, including Falko. As we close this transaction, we are moving forward with a stronger financial position for our company,” said Colin Copp, President and Chief Executive Officer, Chorus. “The significant deleveraging and improved liquidity resulting from this sale will enable us to implement a sustainable capital return program for our shareholders and fund steady growth in our aviation services businesses.”
“We extend our sincere gratitude to all of the parties who made possible the successful completion of this transaction, including Chorus and Falko employees and our advisors,” noted Mr. Copp. “We also thank our board of directors and shareholders, whose guidance and strong endorsement of the transaction were instrumental in re-positioning Chorus for future success.”
Chorus also announced the planned retirement of Jolene Mahody, Executive Vice President and Chief Strategy Officer, effective January 2025 after a 32-year career with Chorus and its predecessor companies. Randolph deGooyer has been appointed to the role of Chief Operating Officer of Chorus, effective January 1, 2025. Randolph is currently the President of Chorus’ largest subsidiary, Jazz Aviation, and brings significant operational and industry experience to his new role. Doug Clarke, currently Jazz’s Vice President of Finance and Business Services, will replace Randolph as President of Jazz.
“I thank Jolene for her contributions over her 32 years with Chorus, including playing a central role in the lead up to today’s announcement to reposition our business,” said Mr. Copp. “I wish Randolph and Doug the very best in their new roles and look forward to their contributions to Chorus and Jazz, as we embark on a new chapter for our business.”
With the disposition of the RAL segment, Chorus is reducing corporate overhead cost in many areas, including reducing its Board of Directors by 50 per cent. As a result, Chorus directors Gail Hamilton, R Stephen Hannahs, Alan Jenkins and David Levenson are stepping down from the board effective January 1, 2025, and Karen Cramm will stay on until the next annual general meeting.
“We are grateful to the directors who are departing for their capable guidance over the years and, most recently, for their invaluable counsel throughout the last year, as we worked on the divestiture of our leasing business. I wish them all the best,” said Mr. Copp.
About Chorus Aviation Inc.
Chorus is a Canadian company focused on aviation services businesses. Our operating subsidiaries are: Jazz Aviation, the largest regional operator in Canada and provider of regional air services under the Air Canada Express brand; Voyageur Aviation, a leading provider of specialty charter, aircraft modifications, parts provisioning and in-service support services; and Cygnet Aviation Academy, an industry leading accredited training academy preparing pilots for direct entry into airlines. Together, Chorus’ subsidiaries provide services that encompass every stage of an aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning; and pilot training.
