Groupe Aeroplan Posts Lower Q1 Profit

Groupe Aeroplan on Tuesday posted a lower quarterly profit and said current market conditions, with reduced consumer expenditures, make it difficult to predict 2009 performance.

Groupe Aeroplan, best known as Air Canada's frequent flier program operator, expects to see a modest consolidated growth in gross billings for the full year 2009, assuming no further deterioration of economic conditions.

For the first quarter, the company earned CAD$23.2 million (USD$19.95 million), or 12 Canadian cents a share, down from CAD$42.1 million, or 21 Canadian cents a share, a year earlier.

Excluding charges, Groupe Aeroplan earned CAD$44.6 million, or 22 Canadian cents a share.

Revenue, including gross billings on the sale of Aeroplan Miles, fell slightly to CAD$355.8 million.