Transat has reported a fiscal third quarter 2023 net profit of $57.3 million or $1.49 per diluted share on revenue of $746.3 million, up from $508.3 million during the same period last year. At July 31, 2023, the carrier had unrestricted liquidity totaling $670.6 million.
On Thursday (September 14, 2023), Transat A.T. Inc. reported their fiscal third quarter financial results for the period ending July 31, 2023. The carrier reported a third quarter net profit of $57.3 million or $1.49 per share on a $238.0 million year-over-year increase in revenue to $746.3 million. During the period, customer deposits for future travel reached $819.9 million, a record third quarter high, and up 40 percent compared to the end of the third quarter last year. At July 31, 2023, Transat had unrestricted liquidity totaling $670.6 million, including cash and cash equivalents of $570.6 million.
In Thursday’s announcement, Transat’s President and Chief Executive Officer, Annick Guérard, said,
“Transat generated record adjusted EBITDA and net income for a third quarter, and its first net profit since the end of 2019. These results demonstrate strong overall execution and our ability to meet sustained customer demand in a cost-efficient way. Third-quarter revenues of $746.3 million were 6.8% above 2019 levels despite capacity being 14% less, while our record adjusted EBITDA of $114.8 million was nearly 85% higher. Robust demand for leisure travel produced yields 29% above those of 2019.
“Transat will conclude fiscal 2023 with solid momentum and, as a result, we are raising our adjusted EBITDA margin target from 5.5-7% to 7.5-8% for the year. Looking ahead to the winter season, the addition of three new A321LR and one A321ceo will contribute to increasing available capacity by 23% to be deployed on our best performing routes and promising new destinations. Early bookings are ahead of last year which, combined with firm pricing, bode well for the start of the new fiscal year.”
Also commenting on the airline’s fiscal third quarter financial results, Transat’s Chief Financial Officer, Patrick Bui, added,
“From a financial perspective, our focus remains on debt reduction. In this regard, net proceeds from our recent land sale in Mexico of approximately C$50 million will be used to reduce our secured facilities. Although the second half usually produces negative free cash flows, our third-quarter performance improved by $45 million compared to last year, bringing our free cash flows generated by operations for the last twelve months to $153 million. This solid momentum raised unrestricted liquidity 31% above last year's level, while record customer deposits for a third quarter are a strong indicator of resilient demand, which should allow Transat to further improve its financial position.”
Transat's Fiscal Third Quarter 2023 Financial Highlights - Courtesy Transat
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. 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.