Not the best of years, but a good finish.
Transat A.T. has announced its fourth quarter and fiscal year results, and says the company is moving in the right direction.
Performance for full year is lower than it was in 2023, with a net loss of CAD 114.03 million compared to CAD 25.29 million a year ago. However, the fourth quarter seems to have marked a turning point for the Montreal-based company with net income of $41.2 million compared to $3.2 million last year.
"Transat closed fiscal 2024 on a positive note with adjusted EBITDA of $123.3 million in the fourth quarter mainly driven by higher traffic, lower fuel costs, and financial compensation from Pratt & Whitney related to grounded aircraft over the past two years,” said Annick Guérard, President and Chief Executive Officer of Transat.
“In addition, our results point to a more disciplined competitive environment as reflected by slightly better yields on a sequential basis. Looking ahead to fiscal 2025, we expect the industry to continue to favour a measured approach while maintaining relatively stable capacity.
“The decline in inflation and interest rates also suggests an increase in consumers' discretionary spending,” Guérard said. “This situation should provide a suitable backdrop to deliver further yield improvements. However, we remain in a period of high economic uncertainty, leading us to exercise caution.”
Guérard said Transat’s “Elevation” program, a comprehensive plan aimed at maximizing long-term profitable growth, is progressing according to plan.
“At this stage, the initiatives implemented will contribute $25 million toward our goal of an annualized adjusted EBITDA improvement of $100 million. Initial significant impacts on our results are expected beginning in the second half of fiscal 2025.”
