- Joe Breitfeller
Air Transat Reports Adjusted Q4 Net Loss of $118.4 Million on 121% Revenue Increase to $62.8 Million
Transat A.T. Inc. has reported a fourth quarter FY 2021 adjusted net loss of $118.4 million or ($3.14) per share on a year-over-year increase in revenue of 120.9 percent to $62.8 million. At October 31, 2021, the company had cash and equivalents of $433.2 million.
On Thursday (December 9, 2021), Transat A.T. Inc. (Air Transat) reported their fourth quarter FY 2021 financial results for the period ending October 31, 2021. The company reported a Q4 adjusted net loss of $118.4 million or ($3.14) per share on a 120.9 percent year-over-year increase in revenue to $62.8 million. The carrier’s net loss attributable to shareholders for the fourth quarter was $121.3 million or ($3.21) per diluted share, compared to a net loss of $238.1 million or ($6.31) per diluted share during the same period last year. At October 31, 2021, Transat had cash and cash equivalents of $433.2 million and access to a total of $820.0 million in available financing, of which $650 million had been drawn.
In today’s announcement, Transat’s President and Chief Executive Officer, Annick Guérard, said,
“Since we resumed operations on July 30, business has been growing steadily. We met and exceeded our targets for resumption of operations in the last quarter and reduced our use of cash. The winter season that is now beginning will see the continuation of our return to more significant volumes. While we remain cautious given the evolving variants, we remain optimistic that we're on track to returning to normal. Meanwhile, we're continuing our transformation. Following the extensive streamlining of our fleet that has been ongoing for several years, the codeshare agreement announced this quarter is the first step forward in our alliance strategy, with further advances to follow in the coming months.
“For the winter, we plan to operate from eight Canadian airports to eight destinations in Europe, 22 in the South and five in the United States, including Miami and Fort Myers, where we'll be flying for the first time. To do that, we will be deploying capacity that will grow from 50% to 75% of pre-pandemic capacity over the winter. We will then build volume further for the summer season, which will include two new routes to Europe and two new destinations in the United States.
“We started 2022 with over 2,000 employees, compared with only 750 at the height of the crisis, and the volume we project will allow us to recall about 1,500 more during the year. It's heartwarming to see our employees gradually taking back up their positions with us. They are the reason that Transat is what it is today, and they are the ones who will build tomorrow's growth and success.”
Celebrating 35 years of service, Montreal-based Transat A.T. Inc. (TSX: TRZ), the parent company of Air Transat, has 5,000 employees and is the third largest airline in Canada, as well as the leading integrated tourism company. Transat offers vacation packages, hotel accommodations and air service to more than 60 destinations in over 25 countries in the Americas and Europe. Air Transat has been voted the ‘World’s Best Leisure Airline’ at the Skytrax World Airline Awards.
Source: Transat A.T. Inc.