Summary
- Air Transat has achieved its first operational profit since 2019, alongside a record-breaking revenue of C$756.3 million ($560 million) in Q3.
- Despite a decrease in load factor, revenues are 26% higher in comparison with 2019, driven by continued demand and customer deposits for future travel.
- The carrier plans to make use of recently freed-up funds to cut back its outstanding debt.
With demand for leisure travel remaining consistent through 2023, Canada’s Air Transat has pulled in a record-breaking C$756.3 million ($560 million) revenue for the third quarter of 2023 – its first operational profit since 2019.
Financial boosts
The Canadian leisure operator has stood firm through the pandemic, emerging with an expansive network and schedule plans to hoist up its operations. Though load factor is down around 2.2 percentage points in comparison with 2019, revenues are 26% higher, with continued demand and deposits for future travel bolstering funds. Customer deposits for future travel have grown to C$819.9 million ($605 million), its highest ever recorded for Q3.
Air Transat’s adjusted net income for the quarter stands at a C$57.3 million ($42 million) profit – roughly $1.49 per share – a stark contrast to Q3 2022’s C$120.9 million ($89 million) net loss. Yr-to-date, the carrier remains to be recording a lack of around C$28.4 million ($21 million), with foreign exchange fluctuations and matured premiums largely tanking the carrier’s profits.
Photo: Liner / Shutterstock
In a press release shared by the carrier, CFO Patrick Bui noted the carrier’s improved performance on 2022 and its future fiscal plan to shrink its outstanding debt using recently freed-up funds.
Moving into Q4 and beyond, Air Transat is predicting even further growth. The carrier will tackle 4 latest Airbus A320 family aircraft through the quarter, bolstering its medium-haul capability and strengthening its current operations. President and CEO of Air Transat Annick Guérard added,
Onward operations
Despite operating a really A320neo heavy fleet, Air Transat shouldn’t be anticipating the Pratt & Whitney PW1100G geared turbofan (GTF) engine recall to have a major impact. During a recent earnings call, Guérard noted that the carrier maintains several spare engines for operations, limiting its requirement for prolonged maintenance until 2025.
Photo: sockagphoto / Shutterstock
For the winter travel season, Air Transat is about to operate over 300 weekly flights from its bases across Canada. The expansive schedule will see the carrier bolster flights to sunny and tropical destinations, including Cancún International Airport (CUN) in Mexico, the Dominican Republic’s Punta Cana International Airport (PUJ), and Fort Lauderdale-Hollywood International Airport (FLL) and Orlando International Airport (MCO) in Florida.
Flights are set to run once every week from Air Transat’s hubs at Montreal-Pierre Elliot Trudeau International Airport (YUL), Quebec City Jean Lesage International Airport (YQB), and Toronto Pearson International Airport (YYZ), amongst others. Often neglected, Halifax Stanfield International Airport (YHZ) will see as much as 4 flights every week to Mexico and the Dominican Republic and frequent services right down to Florida throughout the peak travel season.
What are your thoughts on Air Transat’s financial performance? Did you fly with the carrier this summer? Tell us within the comments.