Chorus Aviation has announced second-quarter 2020 financial results and an update on the impact of COVID-19.
In the second quarter of 2020, Chorus reported adjusted EBITDA of CA$91.0 million, an increase of CA$5.3 million over the second quarter of 2019.
The Regional Aircraft Leasing segment's adjusted EBITDA increased by CA$8.2 million primarily related to the growth in aircraft earning leasing revenue partially offset by a CA$1.1 million expected credit loss provision related to management's assessment of its lessees' credit risk. The Regional Aviation Services segment's adjusted EBITDA decreased by CA$2.9 million.
“The global aviation industry continues to be significantly challenged by the effects of the COVID-19 epidemic. Our focus remains on ensuring the safety of our employees and passengers and maintaining ample liquidity. The team has dramatically reduced costs, curtailed capital investment and raised new funding. With CA$228 million in liquidity, we are well positioned to manage through an extended recovery period and to participate in the growth of the aviation industry in the future,” stated Joe Randell, President and Chief Executive Officer, Chorus.
“Since the start of this crisis, we've had to make very difficult but necessary decisions, including the reduction to our workforce by approximately 65%, or almost 3,200 employees. At the end of the second quarter, Air Canada announced the discontinuation of 21 Air Canada Express regional routes operated by Jazz, and the closure of eight Jazz-managed stations at regional airports.” (US$1.00 = CA$1.32 at time of publication)
