NAV CANADA reports financial results for third quarter

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NAV CANADA has reported its financial results for the three months ended 31 May 2007.

The civil air navigation services provider said that growth in air traffic and favourable cost variances from plan contributed to an improvement in the company's financial position during the third quarter of its 2007 fiscal year.

Revenues before rate stabilization and rate reduction adjustments for the third quarter were CAD297m, compared to CAD289m for the same period in fiscal 2006. The higher revenues were mainly due to a 4.0% year-over-year increase in air traffic volumes, partially offset by a 1.8% reduction in customer service charges.

Operating expenses before rate stabilization for the quarter were CAD246m, which is CAD22m higher than in the same period last year, mainly due to higher pension costs and compensation levels and the recording in the third quarter of fiscal 2006 of the recovery of unpaid customer service charges related to Canada 3000 and Inter-Canadien Inc.

Interest and depreciation totalled CAD57m, down CAD4m from the previous year.

NAV CANADA said that it recorded an excess of expenses over revenues of CAD6m in the third quarter of fiscal 2007, before considering a CAD14m improvement in the rate stabilization account and a CAD7m transfer from the rate reduction obligation. The company noted that its quarterly results fluctuate due to seasonality in air traffic and other factors, and said it intends to break even on an annual basis.

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