Transat A.T. is hitting the refresh button after showing a financial loss of nearly $40 million in the third quarter of this year.
Transat on 12SEP said it suffered a net loss of $39.9 million in the third quarter ending 31JUL, 2024. That’s down from $57.3 million in net income last year. Revenues are down 1.4% for Q3 2024 coming in at $736.2 million, compared with $746.3 million last year.
Annick Guérard, President and Chief Executive Officer of Transat, said the results “reflect evolving market conditions and industry-wide pressure, as recently indicated by other carriers.”
“Demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty,” she said. “Capacity increases throughout the industry also added to competitive pressure and negatively impacted yields.
"We have launched a comprehensive plan, referred to as our Elevation Program, which is designed to accelerate our corporate strategy execution and drive long-term profitable growth,” said Guérard. “[The prgram] aims for a complete review of operations and business practices.”
“Our target is to achieve a $100 million improvement in annual adjusted EBITDA over the next 18 months.”
For the nine-month period ended 31JUL, 2024, Transat said revenues reached $2,494.9 million, up 9.2% from $2,283.9 million in the corresponding period a year ago. For the nine-month period, across the entire network, offered capacity increased by 12.9% compared with 2023. Overall, traffic was 10.0% higher than for the corresponding period in 2023.
“Looking ahead, we are confident that the initiatives from our Elevation Program will gradually place us on the path to sustaining an improved financial performance,” said Jean-François Pruneau, Transat’s CFO. “Nevertheless, it remains our top priority to complete a refinancing plan and strengthen our balance sheet. To that end, we are continuing our discussions with stakeholders and are reviewing a number of alternatives.”
