Chorus Aviation Inc. (Chorus) announced its second-quarter 2024 financial results, highlighting significant changes in its operations. On July 30, 2024, Chorus revealed that it had entered into an agreement to sell its Regional Aviation Leasing (RAL) segment, which has since been reclassified as discontinued operations. Following the closure of this transaction, Chorus will operate under a single reportable segment, eliminating the need for segmented financial disclosures.
During the second quarter of 2024, Chorus reported an adjusted EBITDA of CA$51.0 million from continuing operations, marking a CA$2.4 million decrease from the same period in 2023. This decline was primarily due to a CA$4.6 million reduction in aircraft leasing revenue under the Capacity Purchase Agreement (CPA), increased general administrative expenses, and a CA$1.0 million rise in stock-based compensation linked to a higher Common Share price. However, these losses were partially offset by a CA$4.9 million increase in other revenue, mainly due to enhanced parts sales, contract flying, and maintenance, repair, and operations (MRO) activities by Voyageur.
Chorus' adjusted net income from continuing operations was CA$11.2 million for the quarter, a slight decline of CA$0.4 million from the previous year. This decrease was attributed to the CA$2.4 million drop in Adjusted EBITDA and a CA$3.3 million rise in depreciation expenses due to changes in depreciation estimates on certain aircraft and capital expenditures. These factors were partially mitigated by a CA$3.5 million decrease in income tax expense, a CA$1.0 million reduction in net interest costs, and a CA$0.9 million positive shift in foreign exchange.
The company's net income from continuing operations fell by CA$7.2 million compared to the second quarter of 2023. This decline was driven by the aforementioned CA$0.4 million reduction in adjusted net income, a CA$7.4 million negative shift in net unrealised foreign exchange, and a CA$0.2 million decrease in income tax recovery on adjusted items. These were slightly offset by a CA$0.8 million reduction in costs related to the employee separation programme. (US$1.00 = CA$1.37 at time of publication).
