Aviation News: NavCanada Revenues fall 56%.

[News]

Scudrunners New// Friday April 9, 2021 – Canada’s air traffic service provider reported their second quarter 2021 fiscal results. The company reported air traffic levels decreased by 56% using their metric of “weighted charging units”. The Company’s revenue for the second quarter of fiscal 2021 came in at  $179 million versus $322 million over the same period in 2020. Obviously the decrease is due to COVID 19 travel restrictions and loss of air traffic. Not to let a crisis go to waste NavCanada upped their services fees by a whopping 29.5% in September 2020. NavCanada’s expenses in the second quarter of fiscal 2021 were $317 million as compared to $387 million over the same period in fiscal 2020. The operating expense reduction was due mostly from Canada Wage subsidy. “The safety of air traffic in Canadian controlled airspace is our primary focus. We continue to face uncertainties associated with the governmental response to the pandemic, including policies related to travel restrictions, quarantine measures, testing and vaccine distribution timelines, and as appropriate, NAV CANADA is aligning our spending with the global outlook for aviation,” said Raymond Bohn, President and CEO. “As I take on the leadership role at NAV CANADA, safety will remain integral to everything we do as we rethink and transform the way we deliver services across the country. With safety at the core, the Company’s continued strength and resilience will see us through the pandemic, its recovery and beyond.” During the second quarter, the Company issued $500 million of General Obligation Notes. Net proceeds of these notes were used to repay the $250 million Series MTN 2011-1 General Obligation Notes which matured on February 18, 2021 and the remaining balance will be used for general corporate purposes. Since the onset of the pandemic, the Company has increased its long-term debt by $1,100 million. The Company ended the quarter with a cash balance of $498 million. Scudrunners Aviation News Check out our Aviation Forum – www.scudrunners.comCheck out our Aviation and Pilots Forum www.Scudrunners.com