ACE Aviation Holdings Inc. (ACE) today reported EBITDAR(1) of $346 million for the third quarter of 2008.
THIRD QUARTER OVERVIEW
- EBITDAR of $346 million, including EBITDAR of $355 million at Air Canada.
- Operating income of $105 million.
- Net loss of $135 million.
- ACE cash of $824 million at September 30, 2008.
Air Canada reported EBITDAR of $355 million for the quarter, a decrease of $206 million from the third quarter 2007.
ACE recorded operating income of $105 million for the quarter. Air Canada reported operating income of $112 million for the quarter, a decrease of $239 million from the third quarter 2007.
ACE recorded a net loss of $135 million for the third quarter of 2008. The deterioration in operating results was mainly due to unprecedented high fuel prices during the third quarter, combined with the effects of an uncertain global economy on Air Canada's results. Air Canada is the primary remaining aviation interest held by ACE.
In addition, the net loss in the current quarter included Air Canada's mark-to-market losses on financial instruments, consisting primarily of fuel hedge contracts, of $93 million and net foreign exchange losses of $87 million due to a weaker Canadian dollar versus the US dollar.
ACE's unconsolidated cash amounted to $824 million at September 30, 2008.
"We continue to actively explore options for our 75 per cent interest in Air Canada to maximize value for our shareholders," said Robert Milton, Chairman, President and Chief Executive Officer, ACE Aviation Holdings Inc.
"We are also actively exploring options for ACE's capital structure, including its convertible preferred shares," concluded Mr. Milton. -- www.cnxmarketlink.com
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