Jazz Air Income Fund's net income for the first quarter jumped 5.5 percent over the first quarter 2006 resulting from its year-old capacity purchase agreement with Air Canada. For the first quarter of 2007, operating revenue was $364.2 million, compared to $320 million in the same period of 2006, representing an increase of $44.2 million or 13.8 percent. The company attributed the increased operating revenue to an additional nine aircraft (seven CRJ-100s and two CRJ-200s) which added 12.1 percent to its block hours and a $20.9 million increase in pass-through costs. It also gained $3.1 million in performance incentives or 1.4 percent of Jazz's scheduled flights revenue as compared to $4.0 million or 2.0 percent for the same period in 2006.
In line with the growth in revenue, total operating expenses increased by $43.2 million or 15.2 percent compared to the first quarter of 2006. Pass-through fuel expense increased by $11.6 million or 19.7 percent owing to fuel price increases of $1.3 and a $10.3 million increase in fuel usage from its increased flying. Capacity increased by 13.1 percent while controllable costs per ASM did not change in the first quarter of 2007 from the year-ago period.