Transat Reports Fiscal Second Quarter Net Loss of $29.2 Million or $0.76 per Diluted Share
Transat has reported a fiscal second quarter net loss of $19.2 million or ($0.76) per diluted share on a year-over-year increase in revenue to $870.1 million, up from $358.2 million during the same period last year.
On Thursday (June 8, 2023), Transat A.T. Inc. reported their fiscal second quarter financial results for the period ending April 30, 2023. The company reported a second quarter net loss of $29.2 million or ($0.76) per diluted share on a year-over- year increase in revenue to $870.1 million, up from $358.2 million during the second quarter of 2022. At April 30, 2023, Transat had cash, cash equivalents and funds available under undrawn credit facilities totaling $723.6 million. At the close of Q2, the company held customer deposits for future travel of $867.1 million, up 38 percent compared to the pre-pandemic level at April 30, 2019.
In Thursday’s earnings announcement, Transat’s President and Chief Executive Officer, Annick Guérard, said,
“For the second quarter of 2023, Transat reported a solid performance, with an adjusted operating income of $56.1 million, nearly 40% higher than in the same quarter of 2019. At mid-year, and based on current booking trends, we are raising the target for the adjusted operating income margin from the initially set range of 4% to 6% to a target of 5.5% to 7% for the fiscal year.
“Several factors contributed to the Corporation's favourable results. Firstly, the demand for leisure travel, which is Transat's primary niche, is holding steady. This high volume of activity is driving prices up, resulting in 15% increases at the beginning of the quarter, and almost 24% at the end of the quarter, compared with the same period in 2019. In addition, Transat actively continued its fleet optimization plan, deploying in winter 2023 a capacity comparable to winter 2019 with 20 fewer aircraft in service. Better price management, thanks to improved practices and new tools, has also helped to maximize revenues and seize market opportunities. Transat also relied on continuous improvement in its operational efficiency throughout the quarter.
“With more than 60% of our capacity sold, the stage is set for a dynamic summer. Transat will deploy for the summer a capacity representing 89% of its 2019 level, with Europe comprising 80% of the activity, leveraging the most profitable routes for Transat.”
Transat's Fiscal Second Quarter 2023 Financial Results - Courtesy Transat/CNW
Montreal-based Transat A.T. Inc. (TSX: TRZ), the parent company of Air Transat, was founded over 35 years ago. The company has 5,000 employees and a leading leisure airline in Canada, as well as the leading integrated tourism company. Transat offers vacation packages, hotel accommodations and air service to destinations across the Americas, Europe and the Caribbean. With codeshare and interline partnerships, Air Transat offers service to over 300 destinations. In 2022, 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 Telbec