- Joe Breitfeller
Air Transat Reports Third Quarter Adjusted Net Loss of $115.6 Million on Revenue of $12.5 Million
Transat A.T. has reported a third quarter adjusted net loss of $115.6 million and a net loss attributable to shareholders of $138.1 million or ($3.66) per diluted share on a 31.4 percent year-over year increase in revenue to $12.5 million.
On Thursday (September 9, 2021), Transat A.T. Inc. reported their fiscal third quarter financial results for the period ending July 31, 2021. The carrier reported an adjusted operating loss of $50.9 million, an adjusted net loss of $115.6 million, and a net loss attributable to shareholders of $138.1 million or ($3.66) per diluted share. Revenues increased year-over-year by 31.4 percent to $12.5 million. Air Transat partially resumed operations on July 30, 2021. At July 31, 2021, the company had cash and cash equivalents of $429.4 million and available financing of $820 million, of which $585.1 million has been drawn. A total of $255.1 million was used to repay travelers who were scheduled to depart after February 1st, 2020, for which a previously issued travel credit was reimbursed in cash.
In Thursday’s announcement, Transat’s President and Chief Executive Officer, Annick Guérard, said,
“We're very pleased we were able to resume operations as scheduled on July 30 and move into the restart phase where our activities can gradually expand, and particularly as we look forward to a winter season that promises to be much busier than the last one. While we must continue to exercise caution given the evolving health situation, and although a full return to normal is still some time away, we're very keen to get the crisis behind us.
“Beyond resuming our operating activities, gradually recalling our employees and delivering training, we'll be using this period to implement our strategic plan. We've announced two new destinations in the United States for the winter, we're working on optimizing our capital structure, and we're engaging in a number of discussions towards entering into airline partnership agreements. Our ambitions are high, but we're on the right track.”
At the end of the third quarter, Air Transat’s deposits from customers for future travel totaled $262.8 million, compared to $638.1 million at July 31, 2020. The total deposit decline was largely attributable to refunds of travel credits made during the third quarter. Transat’s off-the balance-sheet agreements (excluding contracts with service providers) at July 31, 2021 was $544.5 million, mainly comprised of commitments to take delivery of seven A321neoLRs.
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 (pre-pandemic figures). Air Transat has been voted the ‘World’s Best Leisure Airline’ at the Skytrax World Airline Awards.
Source: Air Transat