Aimia reports second quarter profit as post Aeroplan transformation continues
The sale of the Aeroplan program to Air Canada earlier this year raised questions about future plans
MONTREAL – Aimia Inc. earned $43.5 million in its latest quarter, boosted by gains related to investments, as it worked to transform itself following the sale of its flagship Aeroplan program earlier this year.
The loyalty rewards company says the profit amounted to 29 cents per share for the quarter ended June 30, compared with a profit of $11.1 million or four cents per share a year ago.
Revenue from continuing operations fell to $31.0 million compared with $42.8 million in the same quarter last year.
On an operating basis, Aimia reported a loss of $21.7 million from continuing operations for the quarter compared with an operating loss of $39.5 million a year earlier.
Aimia sold the Aeroplan program to Air Canada earlier this year, leaving it with significant cash on hand but also questions about its future.
The company’s other assets include a 48% stake in Aeromexico’s loyalty program, PLM, and a 20% share of AirAsia’s loyalty program, Think Big.
“The second quarter was marked by a significant return of cash to shareholders as we progress in our business plan to transform our existing business to deliver profitability during 2020,” chief executive Jeremy Rabe said in a statement.
“We remain confident that our new strategy as a consolidator in the loyalty and travel space should create value for the company, and we are in active discussions with potential acquisition targets.”