Will consumers face not only higher prices but currency surcharges this winter?

Will consumers face not only higher prices but currency surcharges this winter?MONTREAL — With the Canadian dollar near a three-year low, your clients may be facing not only higher prices this winter but a currency surcharge as well.

Transat A.T. President and CEO Jean-Marc Eustache reported robust results for the fourth quarter and fiscal year last week and said prices are about 5% higher this winter.

During a conference call with analysts and media, he also mentioned that rival Sunwing was considering a currency surcharge of $25-$30.

“We’ll look at it and make a decision.”

Capacity is up 3% this winter with bookings running slightly behind and 41% of winter packages now sold.

Transat is coming off a very healthy fourth quarter where the company made a profit of $54.7 for the three months ending Oct. 31, compared with $16.6 million in the same quarter a year ago.

Revenue rose to $808.6 million from $763.4 million in the previous quarter.

For the fiscal year as a whole, Transat made a profit of $58 million compared to a loss of $16.7 million in the previous year. Revenues were down slightly to $3.6 billion from $3.7 billion.

“We achieved very good results on the transatlantic market and posted profits on the Sun destinations market as well as in France,” said Eustache. “As a result, we had our best fourth quarter ever as well as the best summer in our history. And for the year, we are back to profitability, with a margin improvement of $100 million. Our efforts on all fronts, including costs, product, marketing, revenue management, and so on delivered the expected results. Our cost-reduction and margin-improvement program is tracking to plan.”

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