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Transat by the numbers

Transat A.T. reports revenues of $1.2 billion for the quarter ended April 30, 2012, compared with $1.1 billion in 2011, an increase of $111.3 million, or 10.1%. The company reported an operating loss of $26.2 million, compared with a margin of $9.3 million in 2011, and a net loss of $13.2 million ($0.35 per share on a diluted basis), compared with a net income of $8.7 million ($0.23 per share on a diluted basis) in 2011. Before non-cash and non-operating items, Transat reported an adjusted after-tax loss of $24.5 million ($0.64 per share on a diluted basis), compared with $0.6 million ($0.02 per share on a diluted basis) in 2011. Jean-Marc Eustache. Transat’s president and CEO, said: “Selling prices of sun destination packages to Mexico and Caribbean declined sharply in the second half of the quarter, while fuel costs remained higher, with negative impact on margins. We remain focused our previously announced plan to return to profitability, which unfolds as planned.” Transat’s second-quarter revenues increased by $111.3 million. It recorded an operating loss of $26.2 million, compared to a margin of $9.3 million in 2011. Revenues of North American business units, which are generated by sales in Canada and abroad, increased by $118.5 million (13.0%) compared with the same period in 2011. The increase is largely attributable to the acquisition of Vacances Tours Mont-Royal, which represented $69.5 million in revenues, as well as to an increase in the number of travellers. In the sun destinations market, selling prices were inferior to the previous year, mainly due to a sharp decline in the second half of the quarter, while fuel and hotel costs were higher. Load factors also declined, especially in the second half of the quarter. Consequently, North American operations resulted in an operating loss of $19.6 million, compared to a margin of $9.8 million in 2011. Revenues of European business units, which are generated by sales made in Europe and in Canada, decreased by $7.2 million (3.7%) over 2011. In France, market conditions during low season were extremely difficult for the whole industry, especially on North African destinations. European operations resulted in an operating loss of $6.6 million for the quarter, compared with $0.5 million in 2011. In the first six months of this year, Transat’s revenues increased by $130.5 million over 2011 and an operating loss of $58.1 million, compared with $5.2 million in 2011. The company has been unable to increase selling prices, while operating costs, especially for fuel (on all markets) and hotels (in the second quarter) were higher, and the Canadian dollar was weaker versus the US dollar.

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