Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier
Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat said Thursday it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company's third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guerard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
The airline has launched a plan to head faster toward profitable growth.
Guerard said the target is to reach a $100 million improvement in annual adjusted EBITDA over the next 18 months.
Profitability continues to be hit by the Pratt and Whitney engine issue, which has so far grounded at least six Transat aircraft, Guerard said on a call to analysts.
The company said it has agreed to a financial compensation from Pratt & Whitney relating to operational disruptions during the 2023-2024 period.
"Such financial compensation, which is mostly in the form of credits, will be applied to the purchase of additional spare engines, which we intend to monetize through a sale and leaseback transaction," Guerard said in a statement.
This report by The Canadian Press was first published Sept. 12, 2024.
Companies in this story: (TSX:TRZ)
CTVNews.ca Top Stories
'Say it to my face': Singh confronts heckling protester on Parliament Hill
NDP Leader Jagmeet Singh confronted a protester for calling him a 'corrupted bastard' on Parliament Hill on Tuesday.
BREAKING Poilievre's first chance to topple Trudeau government expected next week
Conservative Leader Pierre Poilievre is set to get his first chance to topple Prime Minister Justin Trudeau's minority Liberal government next week, CTV News has confirmed.
Why it's 'very hard' to find work in Canada
Vacancies have steadily fallen since the glut of nearly one million open posts in 2022. At the time, one in three businesses had trouble hiring staff due to a labour shortage. Since then, vacancies have dropped.
Judge orders Sean 'Diddy' Combs jailed in sex trafficking and racketeering charges
Sean 'Diddy' Combs presided over a sordid empire of sexual crimes, coercing and abusing women for years while using blackmail and shocking acts of violence to keep his victims in line, according to an indictment unsealed Tuesday.
Hezbollah hit by a wave of exploding pagers and blames Israel. At least 9 dead, thousands injured
Pagers used by hundreds of members of the militant group Hezbollah exploded near simultaneously in Lebanon and Syria on Tuesday, killing at least nine people.
Two people charged in murder of Halifax teen; police believe remains have been found
Halifax Regional Police believe Devon Sinclair Marsman, who disappeared in 2022, was the victim of a homicide and two people have now been charged in his death.
BREAKING Canucks' Dakota Joshua reveals he is recovering from cancer
Vancouver Canucks forward Dakota Joshua revealed Tuesday he underwent cancer treatment over the summer, and will not be ready to play when the team’s training camp begins later this week.
How to prevent lung cancer, regardless of whether you smoke, according to a doctor
More people who have never touched a cigarette are getting lung cancer, but there are ways to prevent it, according to a doctor.
Liberals need to 'redouble efforts' after byelection losses, Trudeau ministers say
Prime Minister Justin Trudeau says he's going to 'stay focused' on governing after being handed his second byelection upset in recent months, as members of his front bench say they’re 'disappointed' in the party's latest showing at the polls.