Aeroplan sees earnings fall
Loyalty scheme owner Groupe Aeroplan has reported falling earnings.
Aeropalan, which owns Canada’s Aeroplan loyalty programme, as well as Nectar, the multi retailer loyalty scheme and 60% of Rewards Management Middle East, the operator of Air Miles programs in the United Arab Emirates, Qatar and Bahrain, has reported that adjusted earnings fell to 26 Canadian cents a share in the second quarter.
These were in line with analyst projections, including the Thomson Reuters mean estimate of 27 Canadian cents and the 31 Canadian cents it earned on an adjusted basis a year earlier.
GAAP earnings fell to C$26.7m or 13 Canadian cents a share from C$31.5m or 16 Canadian cents a share.
The Montreal-based loyalty-program company said it did well in the face of lower consumer spending, but believes uncertainty surrounding Air Canada in the period hurt its Canadian business, influencing average per-card spending in its financial-partner segment.
Groupe Aeroplan owns Canada’s Aeroplan program, which can be used to accumulate reward miles on Air Canada flights as well as other rewards.
Gross billings decreased 5.6%, to C$338m from C$358m. On a constant-currency basis, gross billings fell about 3%.