NAV CANADA reports results

Airline Industry Information, April 13, 2007

AIRLINE INDUSTRY INFORMATION-(C)1997-2007 M2 COMMUNICATIONS LTD

Canadian civil air navigation services provider NAV CANADA has reported its financial results for the three and six months ended 28 February 2007.

The company said that growth in air traffic and favourable cost variances from plan contributed to an improvement in the financial position during the second quarter of its 2007 fiscal year.

The company's revenues, before rate stabilisation and rate reduction adjustments, for the second quarter of fiscal 2007 were CAD269m, compared to CAD264m for the same period last year. The increase was mainly due to a 5.0% year-over-year increase in air traffic volumes, partially offset by the average 1.8% reduction in customer service charges as well as a decrease in other revenues.

In establishing customer service charges for fiscal 2007 the board of directors approved a CAD29m drawdown of the rate stabilisation account in order to achieve planned breakeven results of operations. The CAD29m is being transferred to revenue evenly throughout the year.

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