Transat’s profit surges thanks to higher passenger traffic, compensation payout

Transat A.T. Inc. reported a big boost in profits in its latest quarter, driven by millions of dollars in compensation from an engine maker as well as an uptick in passenger figures. Net income surged to $41.2m in the three months ended Oct. 31 versus $3.2m in the same period a year earlier, the travel company said. About $33.6m of those earnings came from aircraft engine giant Pratt & Whitney, which dolled out the compensation after recalling its turbofans for inspection and repair. Air Transat, one of many airlines hit by the recall, had grounded a half-dozen planes by this fall as a result. The profit increase also owes to a nearly three per cent rise in passenger traffic, Transat said in a release Thursday. CE Annick Guérard maintained a cautiously optimistic outlook for the year ahead. “The decline in inflation and interest rates also suggests an increase in consumers' discretionary spending. This situation should provide a suitable backdrop to deliver further yield improvements,” she said.<br/>