The Canadian Press - ONLINE EDITION

Transat reduces net loss to $7.9 million on revenues of $1.1 billion

  • Print

MONTREAL - Package tour comany Transat A.T. Inc. (TSX:TRZ.A) reduced its net loss to $7.9 million for the second quarter from $22.8 million in the year-ago period as revenues rose one per cent to $1.1 billion.

The parent company of airline Transat said Thursday the results for the quarter and the winter are slightly better than it expected, despite a sudden drop in value of the Canadian dollar that led to a significant increase in operating expenses.

Those were up by $22 million.

The loss amounted to 20 cents per share for the quarter ended April 30, compared with 59 cents per share in the same quarter last year.

Transat says its adjusted operating loss came to $4 million, compared with an adjusted operating profit of $2.7 million in 2013, and was attributable "entirely" to the decline in value of the Canadian dollar against the U.S. dollar.

"It was a peculiar winter," chief executive Jean-Marc Eustache said in a news release.

"In December, margins were higher year-over-year and we were heading toward a performance improvement. The sudden drop in value of the Canadian dollar provoked a significant increase in operating expenses that reversed the situation, as it came early in the season, when the market resists increases in selling prices."

During the quarter, Transat reduced capacity on its sun-destination routes by 3.5 per cent, which contributed to a 5.3 per cent overall decrease in the number of travellers.

Average selling prices were up, and the euro and pound traded higher against the Canadian dollar.

Transat says the combined effect of increased selling prices and cost controls weren't enough to offset the effect of those increased expenses.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Tree remover has special connection to Grandma Elm

View more like this

Photo Store Gallery

  • JOE BRYKSA/WINNIPEG FREE PRESS Local- A large osprey lands in it's nest in a hydro pole on Hyw 59  near the Hillside Beach turnoff turn off. Osprey a large narrow winged hawk which can have a wingspan of over 54 inches are making a incredible recovery since pesticide use of the 1950's and  1960's- For the last two decades these fish hawks have been reappearing in the Lake Winnipeg area- Aug 03, 2005
  • MIKE.DEAL@FREEPRESS.MB.CA 100615 - Tuesday, June 15th, 2010 The Mane Attraction - Lions are back at the Assiniboine Park Zoo. Xerxes a 3-year-old male African Lion rests in the shade of a tree in his new enclosure at the old Giant Panda building.  MIKE DEAL / WINNIPEG FREE PRESS

View More Gallery Photos

Poll

What's your take on a report that shows violent crime is decreasing in Winnipeg?

View Results

View Related Story

Ads by Google