TORONTO — The news reports coming in from Grand Bahama and the Abaco Islands are heartbreaking, and the images even more so.
MONTREAL — Transat has released its third quarter results as it awaits the completion of a proposed takeover deal by Air Canada.
Transat posted a loss of $11 million, which amounted to 29 cents per share for the quarter ended July 31 compared with a loss of $5 million, or 13 cents per share in the same quarter last year.
President and CEO Jean-Marc Eustache says Transat remains focused on its operations “and note an improvement in our adjusted results for the quarter compared with last year.”
Eustache added that the company is “very satisfied” with the support received from its shareholders. “The planned transaction is good news for our shareholders, our employees, our clients and our community, and we’re currently working to obtain the required regulatory approvals to complete it,” he says.
Transat posted revenues of $698.9 million for the quarter, up $34.3 million (5.2%) compared with 2018, an increase attributable to the higher average selling prices and improved load factors across all markets. The number of travellers rose 4.3% in the transatlantic market, the company’s main market for the period.
Operations generated adjusted operating income of $21.8 million, compared with $2.4 million in 2018, an improvement of $19.5 million.
The outlook for 2019 fourth quarter looks “slightly higher” than that of last year, with the transatlantic market outbound from Canada and Europe accounting for a substantial portion of Transat’s business during the summer season. For the period from August to October 2019, Transat’s capacity is similar to that deployed in the same period last year. To date, 83% of the capacity has been sold, the load factors are lower by 0.9% compared with summer 2018, and selling prices of bookings taken are 2.1% higher than those recorded at the same date in 2018.
The impact of currency variations, combined with lower fuel costs in U.S. dollars, will not result in a significant increase in operating costs if aircraft fuel prices remain stable and the dollar remains at its current level.
On the sun destinations market outbound from Canada, for which summer is low season, 83% of capacity is sold and the load factors are 5.6% higher compared with 2018.
Transat shareholders voted last month to approve the takeover of the company by Air Canada and a Quebec court has also signed off on the transaction.
However, the deal still faces regulatory hurdles. The company says it expects the agreement to close by the second quarter of the 2020 calendar year if the required regulatory approvals are obtained and conditions are met.
With file from The Canadian Press