ACE Aviation Holdings reports Q1 results, announces special distribution

Airline Industry Information, May 14, 2007

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

ACE Aviation Holdings Inc, the parent company of Air Canada, has reported its financial results for the first quarter of 2007.

The company recorded a net loss of CAD72m or CAD0.70 per share for January-March this year, down from a profit of CAD118m or CAD1.12 per share in the same quarter last year.

The operating loss (excluding special charges) amounted to CAD20m, an improvement from CAD29m in January-March 2006.

Operating revenues for the first quarter increased to CAD2,625m from CAD2,484m a year ago.

Separately, ACE Aviation Holdings announced the terms of a third special distribution to its shareholders under a statutory arrangement that was approved by shareholders in October 2006.

ACE shareholders as of the close of business on 24 May 2007 will be entitled to receive a non-cash distribution of approximately 0.157 units of Aeroplan Income Fund and approximately 0.104 units of Jazz Air Income Fund per share.

The distribution is valued at approximately CAD463m or approximately CAD4.05 per ACE share, the company said.

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