Canada: Transat returns to profit in the third quarter

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THE Canadian tour operator Transatparent company of the airline Air Transatpresented its results for the third quarter of 2023, showing a record net profit for the first time since 2019.

For the months of June, July and August, Transat recorded revenues of 746.3 million Canadian dollars, 238 million more than the corresponding period last year and an increase of 47%. The group released a net profit of 57 million Canadian dollars, compared to a loss of 106 million Canadian dollars in the same quarter last year. It enjoyed a positive operating profit of CA$64.4 million, far from the operating loss of CA$93.2 million for the third quarter of 2022.

Strong demand for leisure travel generated returns 29% higher than in 2019(…) Transat will end the 2023 fiscal year on this solid momentum “, confidently predicts Annick Guérard, president and CEO of the Canadian tour operator.

Although load factors for the fourth quarter are 2.2 percentage points lower than in 2019, unit air revenues, expressed as revenue per passenger mile (or “yield”), are 26% higher. The combination of robust demand and rising prices will allow Transat to face a context of costs that generally remain high and volatile.

For the next winter season, the recent addition of four aircraft – three Airbus A321LRs and one A321ceo – and optimal use of the fleet will contribute to increase available capacity by 23%, while Transat continues to methodically develop its offer. The current market trend in terms of demand and prices remains favorable for the start of the new season, according to Annick Guérard: “ These devices will be deployed on our most profitable routes and to promising new destinations. To date, the number of advance bookings is higher than last financial year, which, combined with higher prices, bodes well for the start of the new financial year “.

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