Group Aeroplan reported 2Q2009 profits of CAD26.7 million, down 15.2% year-on-year, as the company suffered a drop in gross billings of approximately 3%. The drop in revenue was mostly attributable reduced levels of sales of Aeroplan miles, which declined 5.6%.
The result was also affected by higher mile redemptions cost (up 4.7%), ties to the reflecting the general economic environment, as well as concern about Air Canada’s stability, shorter trip distances and unit cost increases related to airline capacity reductions and a marginal decrease in selling, general and administrative expenses. If current economic conditions prevail, Groupe Aeroplan forecasts a 2-4% decline in consolidated gross billings for the full year 2009.
Selected Aviation suppliers’ daily share price movements (% change): 18-Aug-09