Transat Reports Fiscal Second Quarter 2024 Net Loss of $54.4 million or $1.40 per Share
- Joe Breitfeller
- Jun 6, 2024
- 2 min read
Transat A.T. Inc. has reported a fiscal second quarter 2024 net loss of $54.4 million or ($1.40) per share on an 11.8 percent year-over-year increase in revenue to $973.2 million. At April 30, 2024, the carrier had cash and cash equivalents totaling $528.9 million.
On Thursday (June 6, 2024), Transat A.T., Inc. reported their fiscal second quarter financial results for the period ending April 30, 2024. The carrier reported a second quarter net loss of $54.4 million or ($1.40) per share on a year-over-year increase in revenue of 11.8 percent to $973.2 million. At the close of the period, Transat had cash and cash equivalents totaling $528.9 million, while customer deposits for future travel stood at 896.9 million, up 3.0 percent compared to fiscal Q2 2023.
In Thursday’s announcement, Transat’s Chief Executive Officer, Annick Guérard, said,
“Transat delivered double-digit revenue growth for a second consecutive quarter on the strength of increased customer traffic. On the profitability side, adjusted EBITDA declined to $38 million in the second quarter due to well-documented industry-wide and company-specific issues.”
“We are fully prepared from an operational standpoint for the summer season. As such, we recently completed the process of bringing in-house passenger and ramp services at Montreal-Trudeau International Airport to enhance the customer journey. Additionally, with the launch of phase one of our commercial joint venture with Porter announced yesterday, we will benefit from additional leverage to optimize our partnership. Finally, in the coming weeks, we will complete the reception of seven aircraft, including four A321LRs that represent the cornerstone of Transat's fleet and growth strategy.”
Also commenting on the company’ second quarter results, Transat’s Chief Financial Officer, Jean-François Pruneau, added,
“We diligently continued to deleverage our balance sheet in the second quarter, reimbursing subordinated debt of $36 million and raising total loan repayments to approximately $110 million in the last three quarters. We also extended the maturity of the secured debt from April 2025 to February 2026 to provide Transat with added flexibility to secure a refinancing agreement.”
Transat's Fiscal Second Quarter 2024 Financial Highlights - Courtesy Transat A.T., Inc.
Montreal-based Transat A.T. Inc. (TSX: TRZ), the parent company of Air Transat, was founded 36 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.
