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Air Transat Reports First Quarter Operating Loss of $25.1M on Revenue of $692.8M

Transat A. T. Inc. announced on Thursday first quarter revenues of $692.8 million, an adjusted operating income of $27.4 million and an operating loss of $25.1 million. The carrier also reported an adjusted net loss attributable to shareholders of $33.8 million.


Air Transat Announces First Quarter Results - Courtesy Air Transat

Today, Transat A. T. Inc. (Air Transat), one of the largest integrated tour operators in the world announced their first quarter results. The company reported a 7% year-over year quarterly increase in revenue attributable to a 10.8% increase in travelers in their winter season ‘Sun Destinations Program.’ For the first quarter, the carrier generated an operating loss of 25.1 million, an improvement over a loss of $48.6 million for Q1 2019. Transat’s adjusted operating income improved to 27.4 million, versus a loss of 7.6 million in the same quarter last year. The net loss attributable to shareholders came in at $33.8 million or $0.90/share compared with a loss of $1.41/share in 2019. The adjusted net loss per share amounted to $0.54 versus a loss of $1.04/share during the same period last year. In Thursday’s announcement, Transat’s President and Chief Executive officer, Jean-Marc Eustache said,


“We’re satisfied with the improvement in results for the first quarter, even though the coronavirus epidemic makes the rest of the year difficult to predict. But Transat has already faced several epidemiological threats in the past, including SARS and H1N1, and I firmly believe that the resilience of our teams and our solid balance sheet will enable us to deal with risks and difficulties once again. We’re taking all the necessary measures to allow our clients to travel with peace of mind.”


Transat expects their acquisition by Air Canada to be completed in the second quarter of 2020, pending regulatory approvals in Europe and Canada and assuming the conditions of the deal have been met. On January 31, 2020, Transat had $682.2 million in cash and equivalents, compared to $620.4 million in 2019 and their working capital ration improved to 1.04 versus 1.14 the previous year. Customer deposits for future travel increased $56.2 million to $809.1 million year-over-year as of January 31, 2020. Excluding service contracts, off-balance-sheet agreements stood at $1.3 billion, primarily attributable to 15 undelivered Airbus A321neos.


Based in Montreal, Transat A.T. Inc. (Air Transat) is the third largest airline in Canada and leading integrated tourism company specializing in holiday travel. The company offers vacation packages, hotel accommodations and air service to more than 60 destinations in over 25 countries in the Americas and Europe.



Source: Air Transat

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