Transat A.T. Inc. has reported a fiscal fourth quarter net profit of $3.2 million or $0.08 per share on revenue of $764.5 million, up from $191.3 million in the same period last year. At October 31, 2023, the carrier had cash and cash equivalents totaling $435.6 million.
On Thursday (December 14, 2023), Transat A.T. Inc. reported their fiscal fourth quarter financial results for the period ending October 31, 2023. The carrier reported a fourth quarter net profit of $3.2 million or $0.08 per share compared to a net loss of $126.2 million or ($3.32)/share during the same period last year. Transat’s fiscal Q4 2023 revenue was $764.5 million, an improvement from $191.3 in fiscal Q4 2023. For the full fiscal year, Transat reported a net loss of $25.3 million or ($0.66)/share compared to a net loss of 445.3 million or ($11.77)/share in the previous fiscal year. At October 31, 2023, the company had cash and cash equivalents totaling $435.6 million, up from $322.5 million last year, while customer deposits for future travel were up year-over-year by 25 percent to $754.2 million.
In Thursday’s announcement, Transat’s President and Chief Executive Officer, Annick Guérard, said,
“Driven by a strong execution of its strategic plan, Transat has solidified its positioning in the Canadian leisure travel industry. As industry dynamics gathered momentum throughout the year, our team focused on meeting growing demand and improving operating efficiency, allowing us to end fiscal 2023 with financial results that exceeded the upper range of our profitability target. Driven by robust yields, we delivered a strong fourth-quarter performance with revenues of $764.5 million, 10% above 2019 levels on 7% less capacity and with similar load factors, while adjusted EBITDA reached $89.0 million, culminating a solid second half. We also generated free cash flow of $162.4 million in fiscal 2023, enabling us to reduce debt and conclude the year with an improved cash position.
“Looking ahead to the new fiscal year, Transat will continue executing on its strategic plan. Our recently announced joint venture with Porter Airlines will be a key element in accelerating growth, as we expect this agreement to gradually increase passenger traffic. Meanwhile, a greater frequency on leading routes, the launch of new destinations and ongoing efforts to optimize fleet utilization will raise our capacity by approximately 19% in 2024. Given the current operating environment, we expect our adjusted EBITDA margin to be in the range of 7.5% to 9% in fiscal 2024, which would exceed Transat’s historical levels. In addition, we intend to further improve our capital structure through sustained free cash flow generation.”
Transat's Fiscal Fourth Quarter and Full Year 2023 Financial results - Courtesy Transat A.T. Inc.
Montreal-based Transat A.T. Inc. (TSX: TRZ), the parent company of Air Transat, was founded over 35 years ago. The company has over 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. The carrier is also launching new service between Montreal and Marrakech in Morocco from June 2024. 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./CNW