Transat A.T. still has work to do to straighten out its finances, but the indicators are increasingly encouraging for the Quebec tour operator. For the first time since the start of the pandemic, it recorded a quarterly operating profit.
In presenting its results for the second quarter ended April 30, Air Transat’s parent company also noted some of its details. Thus, for the current financial year, its adjusted operating margin should oscillate between 5 and 7%, compared to the previous range of 4 to 6%.
“Demand is holding up in leisure travel, which is Transat’s main niche,” said its President and Chief Executive Officer, Annick Guérard. Robust traffic is driving rising prices, up 15% at the start of the quarter and almost 24% at the end of the quarter. »
During the months of February, March and April, the Montreal-based company posted revenues of $870 million, up 143% from the same period a year ago. Its operating profit was 19 million, compared to an operating loss of 87.5 million in the second quarter of 2022.
Net loss narrowed significantly, from $98 million, or $2.60 per share, to $29 million, or 76 cents per share. Excluding one-time items, net loss was $8 million, or 21 cents per share, compared to an adjusted loss of $111.5 million, or $2.95 per share, a year ago.
This quarterly performance partly exceeded the expectations of analysts surveyed by Refinitiv. They anticipated an adjusted loss per share of 66 cents on revenue of 881 million.
So far, the company has sold more than 60% of its seats offered for the summer season. Its total capacity for the summer is at 89% of pre-pandemic levels.