A Canadian aviation company that owns the country’s largest regional airline contractor is reporting a profit for the second quarter even though 91 percent of its airline’s schedule evaporated with the COVID-19 travel restrictions. Chorus Aviation, which provides most of Air Canada’s regional feeder schedule, told investors it had an adjusted net income of $21.6 (CAD) million from April to June and what’s kind of remarkable is that it’s just $2.5 million (CAD) less than the earnings for the pre-COVID first quarter. Chorus is diversified and has a leasing division that is chipping in revenue but the essential collapse of the industry in late March has taken its toll.
“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 percent, or almost 3,200 employees,” said CEO Joe Randell. Air Canada has since canceled more routes, eliminating service to 21 rural communities, and he said it’s time for the Canadian government to step in. “Action needs to be taken by government to ensure Canada has an efficient and accessible air transportation network across our vast country,” he said. He also said there are some hopeful signs on the horizon and he expects to have more aircraft flying by the end of the year.
