Transat's Q3 results reflect challenging summer

A challenging summer for the transatlantic travel market significantly affected Transat’s third-quarter results, the company said.

The tour operator posted a drop in net income to $9.4 million from $13.1 million in 2015, as well as revenues of $663.6 million, compared with $704.8 million for the same period of 2015, a decrease of $41.3 million, or 5.9 per cent.

Ocean Hotels, which is 35 per cent owned by Transat, accounted for $2.5 million of the company’s net income for the quarter, against $1.6 million in 2015.

"The transatlantic market overall, and the United Kingdom in particular, has been affected by drastically increased supply, and demand that cannot keep up quickly enough, fuelled in part by terrorism-related fears," said Jean-Marc Eustache, president and CEO of Transat. "We are relatively satisfied with our results, given the circumstances, but we cannot hope for a repeat of our outstanding summer-season performance over the past two years."

Transat expects its overall results for the fourth quarter to be lower compared to those of last year.

The full report is available here.