Saturday, July 13, 2024
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NAV CANADA has published its financial results for the three and nine months ending May 31, 2024. The third quarter of fiscal 2024 highlighted a notable 5.6% year-over-year increase in air traffic levels, measured in weighted charging units.
For the third quarter of fiscal 2024, the Company reported revenues of $433 million, slightly down from $436 million in the same period of fiscal 2023.
Despite a decrease in free cash flow to $17 million from $32 million in the third quarter of fiscal 2023, this was primarily due to higher capital expenditures. This impact was partially mitigated by increased operating cash inflows compared to the previous year. NAV CANADA concluded the quarter with a robust cash balance of $571 million.
“Partnering for success is a foundational concept to how NAV CANADA will achieve its long-term goals, and this concept featured strongly in the third quarter,” said Raymond G. Bohn, President and CEO, NAV CANADA. “Our partnership with CAE brings two leading Canadian companies together to augment our training capacity, contributing to the future sustainability of operations and bringing more Canadians into our highly skilled workforce sooner. We celebrated the ground-breaking of our first LEED certified Control Tower with the Victoria Airport Authority and, more recently, have announced our technology partner that will support our Digital Aerodrome Air Traffic Services program. Our partners, customers and our people are at the heart of how we are building a resilient, innovative, and progressive organization which is ready to tackle future challenges.”
NAV CANADA has announced its financial results for the third quarter of fiscal 2024, ending May 31, 2024. Operating expenses for this period reached $418 million, an increase from $386 million in the same quarter of fiscal 2023. This rise was primarily attributed to higher compensation costs driven by increased wages and staffing levels.
The net other income and expenses for the third quarter of fiscal 2024 showed a net expense of $19 million, an improvement compared to the $24 million net expense reported in the same period of the previous year. This positive change was due to lower net interest expenses.
For the third quarter of fiscal 2024, NAV CANADA recorded a net loss (before net movement in regulatory deferral accounts including rate stabilization) of $5 million. This contrasts with a net income of $26 million reported for the same period in fiscal 2023.
Under legislation that regulates the setting of charges, NAV CANADA manages the timing of recovery of certain revenues and expenses through movements in regulatory deferral accounts. The net movement in these accounts for the third quarter of fiscal 2024 resulted in an expense of $27 million, down from an expense of $39 million in the same quarter of fiscal 2023. This change is mainly due to a decrease in favorable rate stabilization adjustments of $9 million and a $3 million net increase in adjustments necessary to align the accounting recognition of certain transactions with the periods they will be considered for rate setting.
As of May 31, 2024, the rate stabilization account had a balance of $220 million, which will be recovered from customers through future service charges.
