Third Quarter 2021 Financial Results Analyst Conference Call
Event Date/Time: November 11, 2021 - 10:00 a.m. A.T.
Length: 42 minutes
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Chorus Aviation, Inc. - Vice President, Investor Relations and Corporate Affairs
Chorus Aviation, Inc. - President and Chief Executive Officer
Chorus Aviation, Inc. - Chief Financial Officer
CONFERENCE CALL PARTICIPANTS
National Bank Financial - Analyst
BMO Capital Markets - Analyst
CIBC World Markets - Analyst
RBC Capital Markets - Analyst
Scotiabank - Analyst
Welcome to the Chorus Aviation, Inc. Third Quarter 2021 Financial Results Analyst Conference
As a reminder, this call is being recorded today, November 11, 2021.
I would now like turn the conference over to Nathalie Megann, Vice President of Investor Relations. Please go ahead.
Nathalie Megann - Vice President, Investor Relations and Corporate Affairs, Chorus Aviation, Inc.
Thank you, Michelle.
Hello and thank you, everyone, for joining us today for our Third Quarter 2021 Conference Call and Audio Webcast.
With me today from Chorus are Joe Randell, President and Chief Executive Officer, and Gary Osborne, Chief Financial Officer. We'll start the call by giving a brief overview of the results and then go on to questions from the analyst community.
Because some of the discussion in this call may be forward-looking, I direct your attention to the cautions regarding forward-looking information and statements which are subject to various risks, uncertainties, and assumptions that are included or referenced in our Management Discussions and
Analysis of the results and operations of Chorus Aviation, Inc. for the period ended September 30, 2021, the Outlook section, and other sections of our MD&A where such statements appear.
In addition, some of the following discussion involves certain non-GAAP financial measures, including references to EBITDA, Adjusted EBITDA, adjusted EBT, and adjusted net income. Please refer to our MD&A for a discussion related to the use of such non-GAAP measures.
I'll now turn the call over to Joe.
Joseph Randell - President and Chief Executive Officer, Chorus Aviation, Inc.
Thank you, Nathalie, and good morning, everyone.
Many airlines, including Air Canada, are reporting their strongest results since the onset of the pandemic and are optimistic these positive trends will continue. Our experience is no different. Change is in the air and our industry has arrived at an important inflection point. Throughout this crisis we've made significant strides to secure liquidity, strengthen our balance sheet, and our customer relationships, and to prepare as best we can to seize opportunities. The regional aviation sector is leading the recovery of domestic air transportation in many parts of the world. Improving market conditions are evidenced this quarter by the significant increases in fleet utilization by both our Air Canada Express operation and our portfolio of leased aircraft.
Starting with the CPA operations, all aircraft have been removed from storage and returned to service. In the third quarter, we carried more than double the number of passengers we carried in the first half of this year. For the balance of this year, we are projected to operate approximately 75 percent
to 80 percent of our fourth quarter 2019 flying activity. As such, we are very pleased to have welcomed back substantially all our frontline and administrative staff and are recruiting additional team members. Jazz is compliant with federal COVID-19 vaccination regulations. Approximately 98 percent of our employees are fully vaccinated. The employees who are not vaccinated or do not have the medical or permitted exemption are on unpaid leave.
Additional indicators that regional and domestic air travel is recovering are found in our leasing business, where leasing revenue collections increased to 77 percent, 10 percentage points over the previous quarter. Our portfolio of leased aircraft, excluding those off lease, operated at approximately 75 percent of their pre-pandemic average flying hours in the third quarter of this year compared to 2019, a remarkable improvement given the industry was essentially grounded at the height of the pandemic.
Since our last report out, we successfully executed agreements to lease eight off-lease aircraft with two new customers. We're pleased to welcome Emerald Airlines of Dublin, Ireland, and Connect Airlines of Boston, Massachusetts, to our portfolio. We now have only two remaining aircraft to be remarketed, and we're in discussions with potential operators. Going forward, we believe airlines will increasingly look to operating leases to finance their fleets, whether to conserve capital or to support their efficiency and sustainability initiatives.
Growth in the middle-class markets was driving rapid pre-pandemic growth in emerging markets and we expect this growth trajectory to resume. Demand for regional aircraft in the 100- to 150-seat range, primarily the new generation Airbus A220s and the Embraer E2s, now commonly referred to as
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Chorus Aviation Inc. published this content on 11 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2021 17:14:22 UTC.