MONTREAL — Transat reported a net loss of almost $61 million in its latest quarter compared with a net loss of about $56.6 million a year ago as revenue climbed by almost 18%.
Revenue for the period ended Jan. 31 amounted to $785.5 million, up from $667.5 million a year prior.
Transat says the quarter was impacted by persistent speculation around a potential flight attendant strike that affected bookings across its winter season.
Transat says the speculation lifted in late February, when it adopted a new collective agreement.
“Transat’s first-quarter results reflect sustained demand for leisure travel. Revenues grew 17.7% year-over-year, driven by a solid traffic increase. However, the persisting speculation of a strike by flight attendants starting last November clearly affected bookings and yield for the winter season, and we are pleased that the adoption of a new collective agreement in late February removed this uncertainty,” said Transat President and CEO, Annick Guérard.
She added that operating challenges related to the Pratt & Whitney GTF2 engine issue, costs incurred, including those related to the temporary leasing of additional aircraft, applied pressure on profitability.
And while demand for travel remains strong, “softer yields indicate heightened consumer price sensitivity in the current macro-economic environment as well as fierce price competition, especially in the Toronto market.”
With file from The Canadian Press
