MONTREAL — Air Transat and the union representing its flight attendants, CUPE, have reached an agreement in principle for the renewal of the collective agreement.
Details of the agreement, subject to a vote, will be presented to members in the coming days.
Meanwhile Transat AT Inc. reported a Q4 profit of $3.2 million in its latest quarter compared with a loss a year ago as its revenue rose more than 30%.
The travel company says the profit amounted to eight cents per share for the quarter ended Oct. 31 compared with a loss of $126.2 million or $3.32 per share in the same quarter last year.
Revenue for what was Transat’s fourth quarter totalled $764.5 million, up from $573.1 million a year earlier.
On an adjusted basis, Transat says it earned 41 cents per share in its latest quarter compared with an adjusted loss of $2.00 per share a year ago.
“Driven by a strong execution of its strategic plan, Transat has solidified its positioning in the Canadian leisure travel industry,” said Annick Guérard, President and CEO of Transat.
“As industry dynamics gathered momentum throughout the year, our team focused on meeting growing demand and improving operating efficiency, allowing us to end fiscal 2023 with financial results that exceeded the upper range of our profitability target.”
Robust yields in Q4 made for a strong Q4 performance, she added, with revenues of $764.5 million, 10% above 2019 levels on 7% less capacity and with similar load factors.
“We also generated free cash flow of $162.4 million in fiscal 2023, enabling us to reduce debt and conclude the year with an improved cash position,” said Guérard.
Transat’s recently announced joint venture with Porter Airlines will be a key element in accelerating growth, she added. Transat will also focus on greater frequencies on leading routes, the launch of new destinations and ongoing efforts to optimize fleet utilization.
Transat also announced it has signed a deal to sell its 50 per cent stake in the Marival Armony Luxury Resort in Mexico to its co-owner, the owner of the Marival Group, for US$15.5 million.
It says the proceeds of the sale will be used to repay debt.
To date, load factors for the winter season are 1.3 percentage points lower than in fiscal 2023, while airline unit revenues, expressed in yield, remain 2.4% higher.
Transat notes that strong continuing demand and pricing conditions should allow the company to cope with a volatile cost environment.
With file from The Canadian Press
