Chorus Aviation Reports $15.6 Million Q3 Net Profit and Raises Guidance

Canadian regional aviation services specialist Chorus Aviation Inc. announced robust third-quarter 2026 financial results, posting a net income of $15.6 million and prompting executive management to increase its full-year earnings guidance. Strong operational performance across its aerospace supply chain, specialized contract flying, and regional aircraft maintenance divisions offset planned contractual adjustments within its core airline capacity flying business.

The Dartmouth, Nova Scotia-headquartered company generated third-quarter Adjusted EBITDA of $47.7 million, compared with $51.6 million during the corresponding quarter in 2025. Adjusted Net Income rose 13 percent year-over-year to $0.68 per basic common share, buoyed by lower finance costs, reduced asset depreciation, disciplined balance sheet management, and a net gain on aircraft asset transactions.

Non-CPA Growth Offsets Scheduled Capacity Step-Downs

The quarterly performance demonstrated continued success in Chorus Aviation's strategic pivot toward high-margin aerospace support services. Revenue contributions from its Voyageur Aviation engineering division and recently integrated KADEX Aero Supply parts distribution business generated an incremental $3.6 million in Adjusted EBITDA during the quarter.

This expansion cushioned the planned financial impact of contractual step-downs in fixed margins and leasing revenues under the long-term Capacity Purchase Agreement (CPA) between Chorus subsidiary Jazz Aviation and Air Canada. Operating under the CPA, Jazz provides regional feeder operations for Air Canada Express across North America using a fleet of Bombardier CRJ900s, Embraer E175s, and De Havilland Dash 8-400 turboprops.

"Our third quarter results highlight the resilience of our integrated regional aviation model," said Colin Copp, President and Chief Executive Officer of Chorus Aviation. "Voyageur and our parts supply business continue to deliver strong revenue momentum, while our operational execution on behalf of Air Canada remains dependable."

Raising Full-Year 2026 Financial Guidance

Reflecting momentum across non-CPA business units and the timely closing of strategic corporate transactions, Chorus raised its full-year 2026 guidance ranges: – Adjusted EBITDA: Raised to a range of $185.0 million to $195.0 million, up from the prior forecast range of $180.0 million to $190.0 million. – Free Cash Flow: Increased to between $110.0 million and $120.0 million, reflecting strong operational cash conversion. – Leverage Ratio: Maintained at an efficient 1.4 times net debt to Adjusted EBITDA.

The upgraded financial outlook incorporates the operational integration of SkyCare Air Ambulance, an aeromedical evacuation and specialized northern charter operator acquired by Chorus on November 1, 2026, for approximately $40 million. The transaction significantly expands Chorus's specialized flight footprint across northern Canadian territories, providing stable year-round medevac flying demand.

Balance Sheet De-leveraging and Cabin Modernization

During the third quarter, Chorus generated Free Cash Flow of $26.9 million and directed $19.2 million directly toward shareholder value creation, including $16.8 million in common share repurchases and $2.4 million in common share dividends.

Concurrently, Jazz Aviation advanced through an extensive, multi-year cabin refurbishment program across the Air Canada Express fleet. The overhaul introduces high-speed satellite Wi-Fi connectivity, larger overhead luggage storage bins, and refreshed modern seating architecture across Dash 8-400, CRJ900, and E175 passenger cabins, aligning regional customer experience with mainline Air Canada widebody standards.

With reduced debt leverage, expanding specialized parts distribution, and predictable CPA revenue visibility, Chorus Aviation continues to reposition its capital structure toward diversified aerospace technical support across the Americas.