NAV CANADA announces second quarter financial results

OTTAWA, ON, April 6, 2023 /CNW/ – NAV CANADA today released its financial results for the three and six months ended February 28, 2023.

In the second quarter of fiscal 2023, the Company saw air traffic levels, as measured in weighted charging units, increase 21.2% on a year over year basis. In comparison to pre-pandemic levels in fiscal 2019 however, weighted charging units were 9.9% lower. The Company’s revenue for the second quarter of fiscal 2023 was $388 million, compared to $313 million over the same period in fiscal 2022.

“Our air traffic levels provide a positive signal on the state of the industry as it continues to recover. NAV CANADA remains focused on supporting a sustained recovery for the industry through strategic and measured investment in world-leading technologies and leveraging innovation in partnership with our customers and stakeholders,” said Raymond G. Bohn, President and CEO. “To do so, we continue to build a strong company culture and a one company mindset that will deliver enhanced resiliency, increased capacity and enhanced long term cost effectiveness.”

The Company had positive free cash flow of $34 million in the second quarter of fiscal 2023 as compared to $28 million in the same period in fiscal 2022. The Company ended the quarter with a cash balance of $411 million.

Operating expenses for the second quarter of fiscal 2023 were $371 million as compared to $350 million over the same period in fiscal 2022 as a result of higher compensation costs and operational expenditures.

Net other income and expenses for the second quarter of fiscal 2023 were a net expense of $20 million as compared to a net expense of $29 million over the same period in fiscal 2022.

The Company had a net loss (before net movement in regulatory deferral accounts including rate stabilization) of $3 million in the second quarter of fiscal 2023 as compared to $66 million for the second quarter of fiscal 2022.

The Company is subject to legislation that regulates its approach to setting charges. The timing of the recognition of certain revenue and expenses recovered through charges is recorded through movements in regulatory deferral accounts. The net movement in regulatory deferral accounts for the second quarter of fiscal 2023 was an expense of $33 million as compared to income of $35 million over the same period in fiscal 2022. This change in regulatory deferrals is primarily due to favourable rate stabilization adjustments of $34 million in the second quarter of fiscal 2023 as compared to unfavourable adjustments of $5 million for the same period in fiscal 2022, along with a $29 million net decrease in adjustments required to align the accounting recognition of certain transactions to the periods in which they will be considered for rate setting. As at February 28, 2023, the rate stabilization account had a balance of $462 million to be recovered from customers through future customer service charges. 

Associated Links

The Company’s Financial Statements and Management’s Discussion and Analysis for the three and six months ended February 28, 2023 can be found at:

Financial Statements
Management’s Discussion and Analysis

About NAV CANADA

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. The Company is internationally recognized for its safety record and technology innovation. Air traffic management systems developed by NAV CANADA are used by air navigation service providers in countries worldwide.

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NAV CANADA reports February traffic figures

OTTAWA, ON, March 20, 2023 /CNW/ – NAV CANADA announced today its traffic figures for the month of February 2023, as measured in weighted charging units for enroute, terminal and oceanic air navigation services, in comparison to the last fiscal year and to its 2019 fiscal year. A fiscal year runs from September 1 to August 31.

In February 2023 weighted charging units were higher on average by 28.8 percent compared to the same month in 2022. As compared to the same month in fiscal 2019, February 2023 weighted charging units were lower on average by 8.9 percent.

Weighted charging units represent a traffic measure that reflects the number of billable flights, aircraft size and distance flown in Canadian airspace and is the basis for movement-based service charges, which comprise the vast majority of the Company’s air traffic revenue.

About NAV CANADA

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.

The Company is internationally recognized for its safety record, and technology innovation. Air traffic management systems developed by NAV CANADA are used by air navigation service providers in countries worldwide.

NAV CANADA reports January traffic figures

OTTAWA, ON, Feb. 16, 2023 /CNW/ – NAV CANADA announced today its traffic figures for the month of January 2023, as measured in weighted charging units for enroute, terminal and oceanic air navigation services, in comparison to the last fiscal year and to its 2019 fiscal year. A fiscal year runs from September 1 to August 31.

In January 2023 weighted charging units were higher on average by 23.5 percent compared to the same month in 2022. As compared to the same month in fiscal 2019, January 2023 weighted charging units were lower on average by 11.3 percent.

Weighted charging units represent a traffic measure that reflects the number of billable flights, aircraft size and distance flown in Canadian airspace and is the basis for movement-based service charges, which comprise the vast majority of the Company’s air traffic revenue.

About NAV CANADA

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.

The Company is internationally recognized for its safety record, and technology innovation. Air traffic management systems developed by NAV CANADA are used by air navigation service providers in countries worldwide.

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NAV CANADA announces a tentative agreement with PSAC

Ottawa, ON, Feb. 1, 2023 /CNW/ – NAV CANADA today announced that a tentative agreement has been reached with the Public Service Alliance of Canada (PSAC) which represents 251 employees across Canada.

The tentative agreement is subject to the union ratification process. NAV CANADA will not be commenting until the agreement is ratified.

About NAV CANADA

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.

The Company is internationally recognized for its safety record and technology innovation. Air traffic management systems developed by NAV CANADA are used by air navigation service providers in countries worldwide.

NAV CANADA reports December traffic figures

OTTAWA, ON, Jan. 23, 2023 /CNW/ – NAV CANADA announced today its traffic figures for the month of December 2022, as measured in weighted charging units for enroute, terminal and oceanic air navigation services, in comparison to the last fiscal year and to its 2019 fiscal year. A fiscal year runs from September 1 to August 31.

In December 2022 weighted charging units were higher on average by 13.2 percent compared to the same month in 2021. As compared to the same month in fiscal 2019, December 2022 weighted charging units were lower on average by 9.5 percent.

Weighted charging units represent a traffic measure that reflects the number of billable flights, aircraft size and distance flown in Canadian airspace and is the basis for movement-based service charges, which comprise the vast majority of the Company’s air traffic revenue.

About NAV CANADA

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.

The Company is internationally recognized for its safety record, and technology innovation. Air traffic management systems developed by NAV CANADA are used by air navigation service providers in countries worldwide.

NAV CANADA advances its Digital Facility Initiative

OTTAWA, ON, Jan. 18, 2023 /CNW/ – NAV CANADA is pleased to announce that Kingston, Ontario has been selected as the site for a digital facility under its multi-year Digital Aerodrome Air Traffic Services (DAATS) program.

In place of a traditional out-the-window view from flight service stations and air traffic control towers, digital facilities will use high resolution optical sensors, external microphones, and other sensors to capture what is happening at an airport.

The live video and data feed, transmitted through secure, reliable networks, will provide a visual presentation of airport activity on a set of large video screens at the digital facility for use by air traffic service personnel in the provision of safe and efficient services.

“Digital facilities provide an opportunity to re-imagine how we deliver service, and where we deliver it from, allowing NAV CANADA to respond effectively and efficiently to changes in airport traffic demand,” said Mark Cooper, Vice President and Chief Technology and Information Officer. “NAV CANADA will leverage technology to continue to provide safe and efficient service levels, increasing resiliency and supporting the aviation industry’s sustainability recovery targets.”

This digital facility serving the local Kingston Airport will be used to refine and evaluate technology and operating procedures. This work will provide a foundation for the creation of a potential digital hub in Kingston that would provide air traffic services to airports in other communities starting in four- to six-years’ time.

“The city of Kingston is excited to be invited to participate in NAV CANADA’s new Digital Facility program and we look forward to working together to introduce this advanced technology at Kingston Airport.” said Bryan Paterson, Mayor of Kingston. “We believe this collaboration will bring benefits to the aviation community across Canada and Kingston in particular.”

The transition to a digital capability opens new opportunities to incorporate new functionality, such as infrared video that increases situational awareness in low visibility conditions and onscreen data tags containing flight information.

The modern digital hubs will be designed for flexibility, ease of maintenance, and enhanced contingency while enhancing NAV CANADA’s employee experience and driving common processes, procedures, technology and training.

By late 2022 there were more than 65 airports in more than 30 countries that have Digital facilities in operation, under development or in feasibility study, out of which 16 airports are already operational and handling day-to-day air traffic.

The DAATS program is one of NAV CANADA’s strategic direction initiatives being implemented to enhance safety, improve services to customers and drive long term resiliency and sustainability.

Associated Links

Backgrounder Digital Facilities 

About NAV CANADA

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.

The Company is internationally recognized for its safety record, and technology innovation. Air traffic management systems developed by NAV CANADA are used by air navigation service providers in countries worldwide.

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Web News • 11 January 2023

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NAV CANADA announces first quarter financial results

OTTAWA, ON, Jan. 11, 2023 /CNW/ – NAV CANADA today released its financial results for the three months ended November 30, 2022.

In the first quarter of fiscal 2023, the Company saw air traffic levels, as measured in weighted charging units⁽¹⁾, increase 30.7% on a year over year basis. In comparison to pre-pandemic levels in fiscal 2019 however, weighted charging units were 8.7% lower. The Company’s revenue for the first quarter of fiscal 2023 was $435 million, compared to $345 million over the same period in fiscal 2022.

The Company had positive free cash flow⁽²⁾ of $127 million in the first quarter of fiscal 2023 as compared to $18 million in the same period in fiscal 2022. During the quarter, the Company repurchased $119 million of its General Obligation Notes and Revenue Bonds, ending the quarter with a cash balance of $395 million.

“The recent growth in air traffic levels enabled early repayment of a portion of the Company’s long-term debt. It is important for NAV CANADA to reduce its debt level to allow for capacity to borrow in the future,” said Raymond G. Bohn, President and CEO.

Operating expenses for the first quarter of fiscal 2023 were $348 million as compared to $337 million over the same period in fiscal 2022.

“As we continue to support the aviation industry in moving towards a sustained recovery, NAV CANADA is focused on working with our partners to address industry challenges. It is critical that we maintain NAV CANADA’s momentum of strategic investment to increase capacity, enhance safety and efficiency and manage system costs,” said Raymond G. Bohn.

Net other income and expenses for the first quarter of fiscal 2023 were a net expense of $26 million as compared to a net expense of $24 million over the same period in fiscal 2022.

The Company had a net income (before net movement in regulatory deferral accounts including rate stabilization) of $61 million in the first quarter of fiscal 2023 as compared to a net loss of $16 million for the first quarter of fiscal 2022.

The Company is subject to legislation that regulates its approach to setting charges. The timing of the recognition of certain revenue and expenses recovered through charges is recorded through movements in regulatory deferral accounts. The net movement in regulatory deferral accounts for the first quarter of fiscal 2023 was an expense of $71 million as compared to an expense of $41 million over the same period in fiscal 2022. This change in regulatory deferrals is primarily due to an increase in favourable rate stabilization adjustments of $19 million and an $11 million net decrease in adjustments required to align the accounting recognition of certain transactions to the periods in which they will be considered for rate setting. As at November 30, 2022, the rate stabilization account had a balance of $496 million to be recovered from customers through future customer service charges.

Associated Links

The Company’s Financial Statements and Management’s Discussion and Analysis for the three months ended November 30, 2022 can be found at:

• Financial Statements 
• Management’s Discussion and Analysis

About NAV CANADA

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. The Company is internationally recognized for its safety record and technology innovation. Air traffic management systems developed by NAV CANADA are used by air navigation service providers in countries worldwide.