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Friday,  July 19, 2024 4:30 AM 

Transat reports loss of $49.6 million in latest quarter

Transat reports loss of $49.6 million in latest quarter
Michael Pihach

Michael Pihach is an award-winning journalist with a keen interest in digital storytelling. In addition to PAX, Michael has also written for CBC Life, Ryerson University Magazine, IN Magazine, and Michael joins PAX after years of working at popular Canadian television shows, such as Steven and Chris, The Goods and The Marilyn Denis Show.

Transat A.T. Inc. has reported a loss of $49.6 million in its latest quarter compared with a loss of $3.2 million a year earlier as it was impacted by rising costs.

However: “The net loss is mostly owed to the sale of Jonview Canada,” Christophe Hennebelle, vice-president, human resources and corporate affairs, told PAX in a phone interview this morning.

Transat sold its Jonview Canada tour business to Japanese travel company H.I.S. Co. Ltd. for a reported $44 million CAD in October 2017. 

The sale of Joneview “pushed the results up last year” of upwards of $30 million dollars, Hennebelle explained, which explains why “there’s a huge chunk” in the difference in this quarter’s performance.

The difference in the net-adjusted loss is between $29-37 million dollars, said Hennebelle. When you factor in the difference, “It’s much smaller,” he said.

The company’s loss amounted to $1.32 per diluted share for the quarter ended Jan. 31st compared with a loss of nine cents per share a year ago when it benefited from selling its Jonview subsidiary.

Operating costs, higher fuel prices...

Revenue in the company’s first quarter totalled $647.6 million, which was down from $648.4 million.

Operating costs, improving its fleet, the weakening of the loonie against the U.S. dollar, and higher fuel prices all played a part in the company's latest figures.

“We’re at the heart of the implementation cycle of our strategic plan. The material transformations, especially in the fleet, lead to an increase in costs, which is a necessary step in order to improve our medium-term performance,” Jean Marc Eustache, president and CEO of Transat, said in a statement.

“If we add fuel and currency to that, we did not yet have all the right cards in hand to improve our results. We look forward to seeing our first two A321LRs arrive in the next three months, the first step before we start reaping the benefits of the changes in the coming years,” he said.