Transat AT posts first profitable quarter since 2019 due to strong leisure demand
The parent of Canadian carrier Air Transat reports on 14 September making C$57.3m ($43.5m) during its fiscal Q3 – its first quarterly profit since late 2019. For comparison, Transat AT lost C$106m during the three months ending 31 July 2022, a period affected by the emergence of the Omicron variant of Covid-19. “These impressive results demonstrate strong overall execution as well as our ability to meet sustained customer demand,” CE Annick Guerard said during the company’s quarterly earnings call. “They also reflect the strength of our brand as a carrier of choice for leisure travel.” Transat benefited from strong demand for international leisure travel – especially for flights across the North Atlantic – and higher pricing during the period, as well as the full resumption of operations following the pandemic. Demand for leisure travel was “robust” throughout the period, Guerard says, and has “remained solid in the early stages” of Transat’s fiscal Q4. “Looking further ahead, early bookings for the 2024 winter season suggest that consumer demand should remain healthy,” she adds. The company generated C$746m of revenue during its fiscal Q3, up from C$508m last year – a nearly 47% increase. Potential headwinds could affect the airline’s performance in the months ahead, however, including “the higher price of fuel, delays in aircraft deliveries and continuing supply chain challenges” such as long turnaround times for aircraft and engine maintenance, Guerard says. Transat recently added four aircraft to its fleet – three Airbus A321LRs and one A321ceo – and plans to operate 40 jets during the upcoming winter travel season in the Northern Hemisphere, which is five more than the carrier flew last winter. Combined with “enhanced fleet utilisation”, the additional aircraft will increase the carrier’s winter capacity by 23%, Guerard says. “This enables us to open new, promising routes, to revise or expand the seasonal character of others and to increase frequency on our best-performing sun destinations,” she adds. In August, Transat disclosed its plans to step up seasonal flying to Latin America, with a new Montreal-Lima route that will fly once weekly from 22 December to 26 April, and Toronto-Lima flights to be operated twice weekly from 20 December to 24 April.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-09-15/unaligned/transat-at-posts-first-profitable-quarter-since-2019-due-to-strong-leisure-demand
https://portal.staralliance.com/cms/logo.png
Transat AT posts first profitable quarter since 2019 due to strong leisure demand
The parent of Canadian carrier Air Transat reports on 14 September making C$57.3m ($43.5m) during its fiscal Q3 – its first quarterly profit since late 2019. For comparison, Transat AT lost C$106m during the three months ending 31 July 2022, a period affected by the emergence of the Omicron variant of Covid-19. “These impressive results demonstrate strong overall execution as well as our ability to meet sustained customer demand,” CE Annick Guerard said during the company’s quarterly earnings call. “They also reflect the strength of our brand as a carrier of choice for leisure travel.” Transat benefited from strong demand for international leisure travel – especially for flights across the North Atlantic – and higher pricing during the period, as well as the full resumption of operations following the pandemic. Demand for leisure travel was “robust” throughout the period, Guerard says, and has “remained solid in the early stages” of Transat’s fiscal Q4. “Looking further ahead, early bookings for the 2024 winter season suggest that consumer demand should remain healthy,” she adds. The company generated C$746m of revenue during its fiscal Q3, up from C$508m last year – a nearly 47% increase. Potential headwinds could affect the airline’s performance in the months ahead, however, including “the higher price of fuel, delays in aircraft deliveries and continuing supply chain challenges” such as long turnaround times for aircraft and engine maintenance, Guerard says. Transat recently added four aircraft to its fleet – three Airbus A321LRs and one A321ceo – and plans to operate 40 jets during the upcoming winter travel season in the Northern Hemisphere, which is five more than the carrier flew last winter. Combined with “enhanced fleet utilisation”, the additional aircraft will increase the carrier’s winter capacity by 23%, Guerard says. “This enables us to open new, promising routes, to revise or expand the seasonal character of others and to increase frequency on our best-performing sun destinations,” she adds. In August, Transat disclosed its plans to step up seasonal flying to Latin America, with a new Montreal-Lima route that will fly once weekly from 22 December to 26 April, and Toronto-Lima flights to be operated twice weekly from 20 December to 24 April.<br/>
