Transat posts adjusted net loss of $6.31 million for Q2

MONTREAL — Transat says it’s aware of Group Mach’s bid to acquire the company and take it private, but so far at least the company hasn’t received any formal proposal to that end from Group Mach.

Meanwhile Transat continues to negotiate with Air Canada as part of a 30-day exclusive due diligence period, set to wrap up June 26.

Transat’s Q2 results, announced this morning, included an adjusted net loss of $6.31 million, down from a loss of $456,000 in Q2 2018. Aircraft fuel costs were up by almost 12% YOY, to $118.9 million.

Revenue was up 3% to $897.4 million.

Transat says investments in its hotel division have slowed down, in accordance with a commitment made in its letter of intent for the potential Air Canada deal. Work in the hotel division is currently focused on preparing construction on the land in Puerto Morelos and reviewing future opportunities, says Transat.

The carrier’s transatlantic capacity for May – October 2019 is higher by 1%. To date, 64% of the capacity has been sold, the load factors are higher by 0.7% compared with summer 2018 and selling prices of bookings taken are similar to those recorded at the same date in 2018.

Transat’s capacity for the summer sun destinations market is similar to last year’s and to date 60% of the capacity has been sold. Load factors are comparable to those of 2018.

“The second quarter is similar to the first in terms of results. We incurred a comparable increase in our costs resulting from fuel prices and exchange rates as well as fleet transition, and we ended the winter with a larger loss than last year,” said Transat President and CEO Jean-Marc Eustache.

“While the due diligence resulting from the letter of intent signed with Air Canada is also underway, we remain focused on achieving the improvements set out in our strategic plan. We remain confident about completing these initiatives if the transaction does not take place.”

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