Transat's Q3 profit nearly triples but outlook clouded by storms

Transat’s Q3 profit nearly triples but outlook clouded by storms

MONTREAL — Transat A.T. Inc. says it has had a good summer, with its profit nearly tripling from the same time last year, but warns that its fall and winter travel seasons could be affected by higher costs related to storms such as Harvey and Irma.

The Montreal-based travel company says its third-quarter net income soared to $26.6 million, from $9.4 million a year earlier, while revenue grew 10.5% to $733.2 million.

Transat says higher revenue was driven by an 8.7% increase in travellers on transatlantic routes, its main market for the third quarter.

But Transat also says higher fuel prices, currency fluctuation and major storms in the Caribbean and surrounding countries is creating a difficult situation for the current fourth quarter.

Air Transat is one of the several Canadian airlines that added flights or increased the size of planes this week to assist travellers in the path of Irma, which appears to be headed for Florida after causing destruction in the Caribbean region.

Excluding the impact from major storms, Transat says it would expect its adjusted operating income for the fourth quarter to be similar to last year, at about $70.8 million.

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