Results

Despite drop in dollar, Transat posts better than expected results in second quarter

MONTREAL — Transat A.T. Inc. posted better than expected results in the second quarter seeing its net loss fall to $7.9 million from $22.8 million in the same quarter last year.

And the company would have recorded a profit had the Canadian dollar not dropped as far as it did.

The company posted revenues of $1.1 billion for the quarter ended April 30, 2014, an increase of 1% compared with the same period in 2013. The decline in value of the Canadian dollar alone resulted in an increase in operating expenses of $22 million.

“Our results for the quarter and the winter are slightly better than what we anticipated in March,” said Jean-Marc Eustache, President and Chief Executive Officer, before adding: “It was a peculiar winter. In December, margins were higher year over year and we were heading toward a performance improvement. The sudden drop in value of the Canadian dollar provoked a significant increase in operating expenses that reversed the situation, as it came early in the season, when the market resists increases in selling prices.”