Jazz Air LP, the regional airline controlled by ACE Aviation Holdings Inc. (ACE/H), will fly 2.3 percent fewer hours for Air Canada this year than earlier forecast, Chief Executive Officer Joseph Randell said.
Jazz will fly about 376,000 hours for Air Canada in 2006, down from an earlier forecast of 385,000 hours, Randell said today at an investor conference in Montreal hosted by CIBC World Markets. Jazz gets almost all its revenue from Air Canada, another unit of Montreal-based ACE and Canada's largest airline.
The shortfall is due partly to ``a number of flight cancellations'' and changes in Air Canada's schedule, Randell said. Randell said he's ``very confident'' Jazz will meet or exceed its target of C$154 million ($136.6 million) in profit in 2006 excluding interest, taxes, depreciation and amortization.
ACE sold 20 percent of Jazz as an income trust initial public offering for C$250 million in January. The Jazz Air Income Fund fell 8 cents to C$9.12 at the 4 p.m. close of trading on the Toronto Stock Exchange. It has declined 11 percent since trading began on Jan. 26.
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