Transat posts operating profit of C$54.4m in fiscal Q3

Washington DC
This story is sourced from Pro
See more Pro news »

Transat A.T., parent of charter airline Air Transat, posted an operating profit of Canadian dollars (C$) 54.4 million ($52.6 million) in its fiscal third quarter to 31 July, compared with C$22.1 million in the corresponding quarter a year ago.

The company's net profit surged to C$41.1 million from C$9.41 million in the same period last year.

Revenues rose 2% year-on-year to C$927 million.

The increase in revenues stems mainly from higher average selling prices, which have more than offset the impact of the company's decision to reduce capacity on all its markets, hence a 7.3% reduction in the number of travellers. Across all markets, selling prices and margins were higher than in 2012.

Transat's North American business units' revenues rose 13%. The increase is partly attributable to its decision to account for all sales of flights between Canada and the United Kingdom in North America. For the quarter, capacity on the transatlantic market was down 10.9% compared with 2012.

Revenues in the company's European business units fell 20.4% year-on-year, says Transat.

For the nine month period, Transat swung to an operating profit of C$30.9 million, compared with an operating loss of C$36 million in the same period last year.

The company posted revenues of C$2.84 billion, compared with C$2.95 billion for the corresponding period of 2012.

Transat expects to record better results than last year for the fiscal fourth quarter, but to a lesser extent than in the fiscal third quarter, in part because of last year's favourable impact of the strong momentum at the end of the fiscal fourth quarter.