Chorus Aviation beat expectations even though the airline says its net profits dropped 65% in the second quarter on a continued decrease in revenues and a series of unusual items.The Halifax-based airline formerly known as Jazz said net income was $7.9-million, or 6¢ per share, which was a decline from $22.6-million or 18¢ per share a year earlier.Revenues fell to $410.3-million from $426.3-million a year ago, Chorus reported Tuesday after markets closed.Excluding one-time costs, adjusted profit was $21.4-million or 17¢ per share, compared to $27.2-million or 22¢ per share in the year-ago period.Chorus Aviation’s adjusted profits were expected to drop by more than 31% to 15¢ per share on $404.4-million, according to analysts polled by Thomson Reuters.“We experienced positive operational and financial performance in the second quarter,” stated president and CEO Joseph Randell in a release.He said the profits were impacted by $13.5-million in unrealized foreign exchange loss on long-term debt and finance leases which had no impact on cash flows, and by $2.3-million in expenses related to an ongoing employee voluntary separation program that will reduce costs.Chorus and Air Canada have been in an arbitration process for many months over so-called benchmarking.Both sides agreed to compare, or benchmark, the growth of controllable costs at Chorus’ operating subsidiary, Jazz Aviation, to similar operators in the U.S. in past years.However, it was sent to private arbitration after they disagreed on the methodology to ensure controllable costs — including salaries and wages, maintenance and overhead.After concluding the final round of hearings, Chorus said it’s confident that its positions will prevail. It nonetheless cut its dividend in half to 7.5 cents per share in May citing increased financial risk of potential retroactive payments to Air Canada.On the Toronto Stock Exchange, Chorus shares were unchanged at $2.24 in Tuesday trading. The value of the shares plummeted after the dividend cut and are valued at less than half the 52-week high of $4.71.

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