period, versus a C$1 million operating loss in the 1998 quarter stemming mainly from a costly 13-day strike by the airline's pilots.

Air Canada said its nonoperating expenses totalled C$55 million in the 1999 fourth quarter, up C$12 million from 1998.

Gains on the sale of investments and other assets included C$25 million from the sale of Equant NV (ENT.N) shares, partially offset by provisions of C$12 million on retired Boeing 747-200 and DC-9 aircraft.

Other nonoperating expenses included C$43 million of costs related mainly to the airline's defence against a failed hostile takeover bid by Toronto-based conglomerate Onex Corp.(OCX.TO) that was financially backed by American Airlines parent AMR Corp. (AMR.N).

Air Canada said it also had gain of C$7 million in the quarter from the purchase of 2 billion Japanese yen of perpetual debt.

Most airlines have been hampered by rising fuels costs in the fourth quarter, but Air Canada said fuel hedging largely offset such higher expenses.

To counter fuel prices that recently hit nine-year highs, several airlines, including Air Canada, have begun implementing fuel surcharges on their ticket prices.

Air Canada's fourth-quarter revenues were C$1.65 billion versus C$1.5 billion in the 1998 period.

Yield, the average revenue per passenger mile, was 20.7 Canadian cents versus 19.8 Canadian cents.

Operating expenses, net of cargo and other non-available-seat-mile revenue, amounted to 13 Canadian cents against 13.8 Canadian cents.

BUSINESS BUC