Transat released its third quarter results, ending in 31JUL 2022, on 08SEP. And while the airline and tour operator is still digging out of the pandemic hole, it says it’s moving into fall and winter with strength and optimism, a position bolstered by its first profitable month in over two years.
"The recovery emerging at the end of the last quarter has been confirmed in recent months. We were able to deploy virtually all of our programs, with continuously improving load factors," Annick Guérard, President and Chief Executive Officer of Transat, said in Transat’s Q3 release.
Transat reported revenues of $508.3 million in the third quarter. That’s almost a 100 per cent increase over the same period last year, when the company was essentially non-operational due to the pandemic. But it was still down 27 per cent from 2019.
In addition, in its most recent quarter, the company also saw a continued adjusted operating loss of $57.8 million, and an adjusted net loss of $120.9 million.
“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,” Guérard revealed, while adding, “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."
Nonetheless, Transat is facing the immediate future with optimism.
It’s reporting customer deposits of $585.6 million, representing 96 per cent - almost full recovery - of pre-pandemic levels, and a 19% increase over last quarter. Transat says those numbers confirm the recovery of demand for travel - something it intends to capitalize on in its sun program in the upcoming season.
"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,” Guérard revealed.
As Open Jaw reported, Transat secured over $100 million in a final tranche of federal government pandemic funding, just as the LEEFF program was wrapped up at the end of JUL.
"Our current cash position, combined with new financing obtained during the quarter, gives us the required flexibility for the future,” Guérard said.
“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," Transat’s CEO concluded.