The travel agent saw the net loss attributable to shareholders increase by 41% for the quarter ended April 30, even though revenue was more than 47 times higher than last year. “Fuel costs have risen sharply, without which we would have reported positive adjusted operating results in April,” CEO Annick Guérard said in a statement on Thursday. He said consumers are ready to accept price increases, and the company has implemented a fuel compensation program to protect against significant increases during the summer. The arrival of two new fuel-efficient Airbus A321neo aircraft this summer will also reduce fuel costs. Aircraft fuel prices in North America rose 124 percent year-on-year to $ 174 a barrel on June 3, according to the International Air Transport Association. Launched in March amid Russia’s invasion of Ukraine, the price has fallen 14 percent in the past month. Months earlier, the highly contagious Omicron strain caused further border restrictions and a new drop in travel bookings. As a result, Transat canceled almost 30 percent of its scheduled flights in January and February. However, the CEO said that the recovery is now in full swing, with sales for summer travel now exceeding the levels of 2019, after falling from mid-December to early March. In April, seating capacity reached two-thirds of pre-pandemic levels, with more than 80 percent of those seating being filled, Guérard told analysts. “Our capacity for summer is about 90 percent of 2019 levels” – only 75 percent for its core transatlantic program, but almost 100 percent for sunny destinations. “If this trend continues, we expect to see good volumes in the coming months.” The story goes on There may be more problems ahead, as endless queues and more flight delays at airports threaten to throw a key to plans in view of the peak travel period. “We’ve had delays at Pearson, among other things – there are challenges in Europe as well. As demand for travel increases, Canada ‘s border policies and airport resources … must reflect this new reality,” Guérard told analysts. He said it was “very difficult” for normal travel volume to be combined with ongoing restrictions, such as random COVID-19 international arrivals tests – a policy that Ottawa said would remain in place until at least June 30. Foreign visitors should also continue to provide evidence of at least two doses of vaccine – unvaccinated Canadians who cannot return home but must be quarantined for 14 days. All travelers must also continue to submit their health information through the ArriveCAN app before returning. Public health protocols mean that customs agents now need two to four times more than the standard 30-second processing time for international passengers, according to Canadian Airports Council interim chair Monette Pasher. The Canadian Aviation Safety Authority, which manages airport security controls, aims to increase the number of control officers, with 400 additional staff in various training phases to be developed by the end of the month, Transport Minister Omar Alghabra said. Transat’s debt burden is another hurdle after completing the second quarter with $ 1.78 billion in debt, up 11% from six months earlier. “We still carry significant debt associated with restarting our operations,” Gerard said. On Thursday, the company reported a net loss attributable to shareholders of $ 98.3 million, or $ 2.60 per share, for the quarter. The result was a loss of $ 69.6 million, or $ 1.84 per share, a year earlier. Revenue was $ 358.2 million, up from $ 7.6 million in the same quarter last year when Air Transat, the airline, suspended operations after Ottawa called for a moratorium on flights to Mexico and the Caribbean. and the adoption of new quarantine measures and testing requirements. On an adjusted basis, Transat said it lost $ 2.95 per share less than an adjusted loss of $ 2.74 per share in the same quarter last year. The first number fell 22 percent below analysts’ expectations for $ 2.42 in losses per share, according to market data firm Refinitiv. This Canadian Press report was first published on June 9, 2022. Companies in this story: (TSX: TRZ) Christopher Reynolds, The Canadian Press
