Even though its revenues are improving, Transat AT is still not out of the woods. Omicron and new border restrictions thwarted its relaunch, forcing the tour operator to seek new accommodations from Ottawa.
“In the short term, our priority is to protect our cash and access the liquidity needed to get through this period of uncertainty,” said Transat No. 1 Annick Guérard on Tuesday during the presentation of its most recent financial results.
“Additional” help
Although the impacts of the pandemic continue to be felt, Mme Guérard acknowledged that the pace of bookings for upcoming trips bodes well.
But since Transat remains “in a cash burn situation” – it drew on its reserves an average of $27 million per month during the last quarter compared to $15 million per month in the previous quarter –, it admitted having had to enter into discussions with the federal government in order to obtain “complementary funding”.
Air Transat’s parent company recorded an operating loss of $73.8 million for the 1er quarter, ended January 31, 2022. At the same time last year, its loss reached $98 million.
Discussions continue
During this period, Transat borrowed an additional $43.3 million from the federal government to allow it to reimburse its customers whose flights had been canceled by the pandemic. This amount is in addition to the $310 million that had already been loaned to him.
The tour operator also managed to postpone the planned increase in interest on the emergency loan contracted with Ottawa. In total, the funding available will reach a maximum of $743.3 million.
Discussions are continuing with Ottawa with a view to establishing other sources of funding. The title of Transat closed at $4.65 on Thursday on the Toronto Stock Exchange, up 0.43%.