Transat posts Q1 results

Transat A.T. Inc. posted revenues of $805.7 million for the quarter ended Jan. 31, 2013, compared with $829.3 million in 2012 — a decrease of $23.6 million, or 2.8%. It recorded an operating loss before amortization and depreciation of $21.0 million, compared with $31.8 million in 2012 and a net loss of $15.1 million ($0.39 per share on a diluted basis), compared with $29.5 million ($0.77 per share on a diluted basis) in 2012. Before non-operating items, Transat reported an adjusted after-tax loss of $21.6 million in 2013 ($0.56 per share on a diluted basis), compared with $29.9 million ($0.79 per share on a diluted basis) in 2012. Commenting on the results, Jean-Marc Eustache, president and CEO of Transat, said: “Changes brought to our organization over the last 18 months, as well as our decision to slightly reduced capacity, have contributed to the improvement of our results.” In reporting its results, Transat attributed the decrease in revenues mainly to its decision to reduce capacity on its markets (Sun, transatlantic and France), hence a 12.6% reduction in the number of travellers. On all markets, selling prices were higher than in 2012. Revenues of North American business units, which are generated by sales in Canada and abroad, decreased by $10.1 million (1.4%) compared with the same period in 2012. For the quarter, the capacity on sun destinations was down 12% compared with 2012. Capacity on the transatlantic market was down 18%. North American business units recorded an operating loss before amortization and depreciation of $8.3 million, compared with $19.1 million in 2012. The improvement in margin is mainly attributable to higher selling prices during the quarter. Looking ahead to the second quarter of 2013, it was noted that the Canadian sun destinations market accounts for a very significant portion of Transat’s business in the winter. For that market, Transat’s capacity in the second quarter is approximately 10% inferior than last year, load factors are inferior, selling prices are higher. On the transatlantic market, on which it is low-season, capacity is 18% inferior to the previous year, load factors are similar and selling prices are higher. In France, where it is also low-season, medium-haul bookings are similar to last year, and long-haul bookings are 7% inferior (based on the CorporationÆs decision to reduce capacity). Selling prices are slightly higher on both market segments. To the extent the aforementioned trends hold, Transat expects better results than last year for its second quarter. On the transatlantic market, for the summer, Transat’s capacity is down by 11% compared with 2012. Load factors are similar and selling prices are higher. In France, compared with last year at the same date, bookings are slightly lower and selling prices are similar. Go to http://www.transat.com for more.