NAV CANADA has reported third quarter fiscal 2020 revenue was CDN 159 million, compared to CDN million in the same period of fiscal 2019, the company said.
The Company´s air traffic growth decreased 59.4% on a year over year basis, as measured in weighted charging units, as a result of the COVID-19 pandemic.
The COVID-19 pandemic and the resulting economic contraction has had, and is expected to continue to have, a significant negative impact on global air traffic and on the aviation industry. NAV CANADA has seen the number of air traffic movements decline since March 2020 as a result of travel restrictions imposed by governments, the closing of international borders and the economic impact of the pandemic. As a result, the Company´s customer service charges revenue has declined significantly as air carriers have reduced their operations, grounded fleets and cancelled flights and routes.
In March 2020, the company accessed its available syndicated credit facility to address near-term liquidity requirements and on May 29, 2020, the Company issued CDN 850 million of General Obligation Notes. The net proceeds of these notes will be used for general corporate purposes, including the repayment of borrowings under the syndicated credit facility and will enhance the Company´s liquidity reserves. The Company has also accessed the Canada Emergency Wage Subsidy government relief program.
Operating expenses for the third quarter of fiscal 2020 were CDN 351 million as compared to CDN 367 million over the same period in fiscal 2019, mainly due to cost saving measures as well as Canada Emergency Wage Subsidy receipts partially offsetting compensation costs.
Net other income and expenses for the third quarter of fiscal 2020 was a net expense of CDN 129 million as compared to a net expense of CDN 15 million over the same period in fiscal 2019, primarily due to a reduction in the fair value of the Company´s investment in preferred interests of Aireon LLC to reflect the potential impact of the COVID-19 pandemic on the aviation industry.
The Company had a net loss (before net movement in regulatory deferral accounts including rate stabilization) of CDN 294 million in the third quarter of fiscal 2020 as compared to a net loss of CDN 31 million for the third quarter of fiscal 2019. This is reflective of the decrease in revenue and reduction in the fair value of the Company´s investment in preferred interests of Aireon LLC due to significantly lower air traffic.
The company ended the quarter with a cash balance of USD 918 million.
NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace.