Groupe Aeroplan profit beats market estimates; Qantas FFP reports positive results

Shares in Aeroplan – which operates Air Canada’s frequent flyer programme – jumped 9.3% on 12-Aug-2010, aided by a 55% jump in gross billings, as the company posted a higher-than-expected profit in the three months ended Jun-2010.

The carrier’s net profit of USD13.5 million, however, decreased 48% year-on-year, with EBITDA also weaker, slipping 9.4% to USD55 million, with the result affected by one-off charges related to the launch of Nectar Italia. Revenues increased 42% to USD455 million in the three-month period. The company added that it expects gross billings in 2010 to be around USD2 billion.

Aeroplan described 2010 as "a year of transition and integration" for the company, with Aeroplan CEO, Rupert Duchesne, adding that the company remains optimistic about its prospects into 2011, boosted by its recent expansion into India and South America and its imminent investment in AeroMexico's frequent flyer programme. He said: "I am very excited about our prospects heading into 2011. The company is growing as global markets recover and is now positioned substantially ahead of its competitors in all major geographies."

Shares of the Quebec-based company have fallen 13% in the past three months. 

Selected Aviation Suppliers & Leasing daily share price movements (% change): 12-Aug-2010

Qantas FFP reports positive results

Qantas this week also reported its financial results for the 12 months ended Jun-2010, revealing a 45% year-on-year increase in underlying EBIT for Qantas Frequent Flyer in the period, to USD295 million. Normalised earnings increased 12% to USD150 million. Memberships increased 23% to 7.2 million.

See related article: Qantas becomes a 3 brand operation: FFP, LCC & regional airline. Domestic yields still sees pressure

Qantas Frequent Flyer Underlying EBIT (AUD mill)*

AeroCentury profits decline, revenues up marginally while costs increase

AeroCentury Corp, an independent aircraft leasing company, reported a net profit of USD528, 000 in the three months ended Jun-2010, a 40% year-on-year reduction, despite revenues increasing 9.8% to USD9.1 million, but as expenses increased 34% to USD8.3 million. Total assets remained also unchanged at USD130 million. Shares in the carrier decreased 6.0% yesterday upon the release of the results.

Vector Aerospace reports improved net profit despite weaker revenues

Vector Aerospace, an independent provider of aviation MOR services in Canada, the US, UK and Africa, reported an improved net profit in the three months ended Jun-2010, with net earnings gaining 11.4% to USD8.5 million, despite a 5.6% decline in revenues to USD133.4 million.

President and CEO, Declan O'Shea, stated: "We have again produced strong results for the quarter. Activity levels and operating results in Pounds Sterling from our UK operations for Q2 continued their trend of year-over-year improvement. We expect this trend to continue for the balance of 2010. Our operations in North America are showing signs of improvement in order intake and we expect the second half of 2010 to benefit from this."

Selected Original Equipment Manufacturers daily share price movements (% change): 12-Aug-2010