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Transat A.T. Reports Fiscal First Quarter 2024 Net Loss of $61.0 million or $1.58 per Share

Transat A.T. Inc. has today reported a fiscal first quarter 2024 net loss of $61.0 million or ($1.58) per share on a year-over-year increase in revenue of 17.7 percent to $785.5 million.


Air Transat Airbus A321neo - Courtesy Airbus

On Thursday (March 14, 2024) Transat A.T. Inc. reported their financial results for the first fiscal quarter for the period ending January 31, 2024.  The carrier reported a first quarter net loss of $61.0 million or ($1.58) per share on a year-over year increase in revenue of 17.7 percent to $785.5 million.  At January 31, 2024, the company had record customer deposits for future travel of $1.03 billion, up 14 percent compared to the same period last year. 


In Thursday’s announcement, Transat’s Chief Executive Officer, Annick Guérard, said,


“Transat’s first-quarter results reflect sustained demand for leisure travel.  Revenues grew 17.7% year-over-year, driven by a solid traffic increase.  However, the persisting speculation of a strike by flight attendants starting last November clearly affected bookings and yield for the winter season, and we are pleased that the adoption of a new collective agreement in late February removed this uncertainty.  As for the operating challenges related to the Pratt & Whitney GTF engine issue, costs incurred, including those related to the temporary leasing of additional aircraft, applied pressure on profitability.  Finally, while demand remains sound, softer yields indicate heightened consumer price sensitivity in the current macro-economic environment as well as fierce price competition, especially in the Toronto market.”


Also commenting on the company’s fiscal first quarter financial results, Transat’s Chief Financial Officer, Jean-François Pruneau, added,


“In recent months, several industry-wide supply chain challenges, including the Pratt & Whitney GTF engine issue, have resulted in higher costs and the need to make certain capacity modifications going forward.  These adjustments should limit capacity expansion to 13% in fiscal 2024, still representing a healthy increase compared to 2023.  Accordingly, we now expect an adjusted EBITDA margin for the full year 2024 to be at the lower end of the range announced last December.  Finally, the refinancing plan remains the organization's top priority and discussions with stakeholders continue.”


Transat's Fiscal First Quarter 2024 Financial Results - Courtesy Transat A.T., Inc./CNW

At January 31, 2024, Transat A.T., Inc. has cash and cash equivalents totaling $453.3 million, and long-term debt and deferred government grant, net of cash, of $352.3 million, down from $375.3 million a year ago.


Montreal-based Transat A.T. Inc. (TSX: TRZ), the parent company of Air Transat, was founded over 35 years ago.  The company has over 5,000 employees and is a leading leisure airline in Canada, as well as the top integrated tourism company.  Transat offers vacation packages, hotel accommodations and air service to destinations across the Americas, Europe and the Caribbean.  The carrier is also launching new service between Montreal and Marrakech in Morocco from June 2024.  With codeshare and interline partnerships, Air Transat offers service to over 300 destinations.  In 2023, Air Transat was voted the ‘World’s Best Leisure Airline in North America’ at the Skytrax World Airline Awards.  The carrier is currently renewing their fleet with the most fuel-efficient and environmentally aircraft in their class, as part of Air Transat’s commitment to a healthier environment, knowing that this is essential for the preservation of the magnificent destinations they serve.


 

Source: Transat A.T. Inc./CNW

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