Transat hits highest since March as it plans July 30 restart

Transat, the vacation operator that Air Canada tried to buy, will discontinue its nascent hotel division and increase its presence in Eastern Canada in an effort to restart its business and return to profit. The Montreal-based company will gradually resume operations starting July 30, it said Thursday. As part of its new strategy, it plans to seek partnerships with other carriers to expand its network, renegotiate some aircraft leases and real-estate contracts, and narrow its fleet to only two Airbus plane models. Transat shares roses as much as 4.9% to their highest level since March 16 before paring those gains. Transat sells vacation packages and flights to Canadians visiting sun-spot destinations in winter and European cities in summer. Airline operations have been suspended in Canada since Jan. 29 because of Covid-19 restrictions. As a result, revenue at Transat has all but vanished, dropping 99% from a year earlier in the quarter that ended April 30.<br/>