Revenue, losses up for NAV Canada in Q2

OBJ Staff
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Higher air traffic volumes pushed revenue up at NAV Canada when compared to last year, but the private air traffic controller still saw its quarterly net loss get worse.

(Stock image)

The not-for-profit reported revenue of $281 million before rate stabilization during its second quarter, the three-month period that ended Feb. 28, 2014. That’s up from $277 million during the same period last year.

The company credited that increase to a 3.2 per cent jump in air traffic volumes.

"Traffic volumes have grown modestly but steadily for almost a full year now," said John Crichton, president and CEO, in a statement. "However, traffic is still not at the level it was in 2008. Despite that, rigorous cost control has enabled the company to continue to keep its rates below what they were over a decade ago."

Expenses rose to $258 million from $248 million during the same period last year.

NAV Canada increased the balance in its rate stabilization account to $67 million, an increase from $60 million. The company uses that account to supplement revenue during slower periods.

That led to a loss of $33 million, after adjustment for rate stabilization. Before rate stabilization that loss was $26 million.

That’s up from the same period last year, when it had a $29 million loss after rate stabilization and a loss of $16 million before rate stabilization.

As the period generally has the lowest air traffic volumes of NAV Canada’s fiscal year, the company says it didn’t expect to break even during the quarter.

Organizations: NAV Canada

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