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Transat Sees Q2 Rev Surge Offset by Fuel Costs, Resulting in $98.3M Loss

Annick Guérard, Transat President and CEO
Annick Guérard, Transat President and CEO

Transat A.T. Inc. reported its second-quarter loss for 2022 grew compared with a year ago despite revenues of $350.6 million, driven by the significant resumption of operations after the effect of Omicron subsided at the end of FEB.

Transat CEO Annick Guerard says sales are progressing in a “very satisfactory manner” for the summer.

"We foresee a strong recovery and will continue to implement all the measures necessary to capitalize on it," stated Guérard.

The loss is attributed to the rising cost of fuel, without which the company "would have reported positive adjusted operating results" in APR. According to Transat, fuel prices rose 75.5 per cent throughout the quarter compared to the same period in 2021.

"Nonetheless, we observe that consumers are ready to accept price hikes and we have implemented a fuel hedging program to protect us against significant increases during the summer," Guérard added.

Customer deposits for future travel stood at $494.2 million by the end of the quarter, representing 80 per cent of pre-pandemic levels (as of 30APR 2019) and up 60 per cent from Q1 2022, which Transat says reflects "the strong recovery in demand."

Forward Strategy

Transat states in its press release:

The recovery that was temporarily slowed down by the Omicron variant is now firmly entrenched and the Corporation continues to implement its strategic plan and take the necessary measures to make the most of the rebound in demand, both for the summer and in the longer term.

  • Rebuilding and developing the network with:
    • the reopening of most of the pre-pandemic network routes
    • codeshare agreements with WestJet (bookings now open) and Porter (opening scheduled for the fall)
    • new destinations (particularly Los Angeles and San Francisco)
    • new direct flights (such as Montréal-Amsterdam or Québec City-London)
    • improved network operations through the addition of connections on existing routes to and from Europe and the United States (such as Paris-San Francisco or London-Los Angeles with a stopover in Montréal)
    • numerous additional routes possible via the connectair by Air Transat platform through virtual interlining agreements with eight airline companies offering over 245 destinations in Europe, North Africa, the Middle East, Central and South America, and Canada

For more information, visit Transat's web site.

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