Transat Reports Fiscal Third Quarter Net Loss of $106.5 Million on Revenue of $508.3 Million
Transat has reported a fiscal third quarter net loss of $106.5 million and an adjusted net loss of $120.9 million. The carrier’s fiscal third quarter revenue increased to $508.3 million, compared to $12.5 million during the same period last year.
On Thursday (September 8, 2022), Transat A.T., Inc. reported their fiscal third quarter financial results for the period ending July 31, 2022. The company reported a Q3 net loss of $106.5 million or ($2.82) per diluted share and an adjusted net loss of $120.9 million. Revenue for the period increased to $508.3 million, compared to $12.5 million during Q3 FY21. When compared to the same quarter in 2019, Transat’s revenues were down 27 percent. At July 31, 2022, Transat had $511.3 million in unrestricted liquidity, and customer deposits totaling $585.6 million, representing 96 percent of pre-pandemic levels and an increase of 19 percent compared to the previous quarter.
In Thursday’s announcement, Transat’s President and Chief Executive Officer, Annick Guérard, said,
“The recovery emerging at the end of the last quarter has been confirmed in recent months. With our prudent planning and our teams’ exceptionally high quality execution, we were able to deploy virtually all of our programs, with continuously improving load factors. We are on track for a winter season that promises to match pre-pandemic levels. The pace of sales is currently very comparable to 2019. Although the quarterly results are still affected by the costs of resuming operations, July was our first profitable month in more than two years, setting the stage for improved results. The strong pricing this quarter also partially absorbed the increase in fuel costs, the adverse effect of which is likely to persist for some time.
“Our current cash position, combined with new financing obtained during the quarter, gives us the required flexibility for the future. We also continued to implement our strategic plan during the quarter, particularly with respect to the fleet, with the receipt of two new A321LRs and the order of four A321XLRs. These new aircraft will bring us all the advantages of the LR, including cost and environmental benefits, with an even longer range.”
During the fiscal third quarter, Air Transat took delivery of two Airbus A321LRs. Today (September 8, 2022), the company announced the signing of long-term lease agreements with Air Lease Corporation (ALC) for four Airbus A321XLRs, three of which will be delivered from the end of 2025 through 2026, and the fourth, an option, which will be delivered in 2027, if exercised. The carrier will also take delivery of five more previously ordered Airbus A321LRs in 2023 and 2024.
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 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. Air Transat has been voted the ‘World’s Best Leisure Airline’ 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