Transat aims for $100 million in cost cuts to improve financial outlook

MONTREAL – Transat AT Inc. (TSX:TRZ.B) says it’s aiming for $100 million of cost savings and margin improvements over the next three year, including $45 million in 2015.

Among other things, the Montreal-based travel company and owner of Air Transat will increase seating density of three Airbus A330 wide-body jets, which will be dedicated to the London and Paris routes.

Transat will also use its narrow-body aircraft to expand the number of destinations offered from Canada this summer.

The three-year strategy and Transat’s latest financial results were announced ahead of its annual meeting in Montreal.

Transat said revenue for the first quarter of fiscal 2015 was $788.6 million, down 6.9 per cent from $847.2 million a year before, as the number of travellers declined and revenue from subleasing aircraft fell.

Its net loss was $64.3 million, up from $25.6 million. After excluding the impact of fuel-price hedging contracts, its adjusted net loss was $32.4 million, up from $23.3 million in the first quarter of fiscal 2014.

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