Chorus share price dips on fears of dividend cut

Shares of Chorus Aviation, which operates 131 aircraft for Air Canada under the Jazz brand, fell by nearly 10% on Wednesday following a warning that the company may have to cut its dividend, after an arbitration panel ruled in favor of Air Canada in a cost dispute. Chorus said that a three-member arbitration panel has selected Air Canada’s method of determining component unit cost drivers over Chorus’s model, which compares its cost growth to that of a group of similar operators. The panel agreed, however, that some cost adjustments will be made in Chorus’s favor, Chorus said. Chorus did not