Transat A.T. Inc. has reported a fiscal third quarter 2024 net loss of $39.9 million or ($1.03) per share on a 1.4 percent year-over-year decline in revenue to $736.2 million.
On Thursday (September 12, 2024), Transat A.T. Inc. reported their fiscal third quarter financial results for the period ending July 31, 2024. The carrier reported a fiscal third quarter 2024 net loss of $39.9 million or ($1.03) per share on a 1.4 percent year-over-year decline in revenue to $736.2 million. For the first nine months of the year, the carrier’s revenue increased 9.2 percent compared to the same period last year to $1.5 billion.. At July 31, 2024, Transat had cash and cash equivalents totaling $361.9 million, as well as cash and cash equivalents in trust or otherwise reserved from travel package bookings of $274.7 million.
In Thursday’s announcement, Transat’s President and CEO, Annick Guérard, said,
“Transat's third-quarter 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. 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. The program, initiated this summer, aims for a complete review of operations and business practices. Its objective is to accelerate the implementation of enhanced tools and processes for our teams, in order to optimize overall execution and efficiency. The program will be spearheaded by the newly created Elevation Management Office, which will strengthen governance and accountability for the initiatives undertaken. Our target is to achieve a $100 million improvement in annual adjusted EBITDA1 over the next 18 months.
Also commenting on the carrier’s fiscal third quarter financial results, Transat’s Chief Financial Officer, Jean-François Pruneau, added,
“Profitability remains affected by costs related to capacity deployment and by the Pratt & Whitney GTF engine issue. We have agreed to a financial compensation from Pratt & Whitney relating to operational disruptions during the 2023-2024 period. Such financial compensation, which is mostly in the form of credits, will be applied to the purchase of additional spare engines, which we intend to monetize through a sale and leaseback transaction. 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. 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.”
Montreal-based Transat A.T. Inc. (TSX: TRZ), the parent company of Air Transat, was founded 36 years ago. The company has nearly 5,000 employees and is a leading leisure airline in Canada, as well as the top integrated tourism company. Transat offers vacation packages, hotel accommodations and air service to destinations across the Americas, Europe and the Caribbean. With codeshare and interline partnerships, Air Transat offers service to over 300 destinations. In 2023, Air Transat was voted the ‘World’s Best Leisure Airline in North America’ at the Skytrax World Airline Awards. The carrier is currently renewing their fleet with the most fuel-efficient and environmentally aircraft in their class, as part of Air Transat’s commitment to a healthier environment, knowing that this is essential for the preservation of the magnificent destinations they serve.
Source: Transat A.T. Inc.
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