(Montreal) Transat affirms that it is approaching profitability while the resumption of travel does not seem to be showing signs of running out of steam.
Ticket sales are on a roll for this winter and the 2023 summer season, said Transat President and Chief Executive Officer Annick Guérard during a press conference on Thursday on the sidelines of the annual meeting and first quarter results.
Market research shows that inflation and rising interest rates haven’t dampened consumers’ wanderlust, she says. “People, especially Canadians — maybe it’s because the health measures have been in place longer — really have very strong travel intentions for the whole of 2023.”
Carried by this favorable wind, the air carrier should stop drawing on its cash reserves this year, rather than in 2024.
Capacity should remain at 90% of what it was before the pandemic, but the increase in ticket prices and other services should allow Transat to post a 25% increase in revenue per passenger-mile in 2023 .
The price increase is “necessary” to take inflation into account, that is “all the inflationary pressure that we have on costs, notably fuel, but also supplies, employee salaries, etc. »
The annual meeting also marked the end of the term of former finance minister Raymond Bachand as chairman of the board of directors. He will be replaced by Susan Kudzman, who has served on the board since March 2014.
In the first quarter (ended January 31), Transat unveiled a loss that was smaller than analysts’ expectations.
Net loss was 56.6 million, compared to 114.3 million in the corresponding quarter of fiscal 2022.
Adjusted diluted net loss per share was $1.62 compared to $2.53 for the same period last year.
Prior to the earnings release, analysts had expected a diluted adjusted loss per share of $2.02, according to financial data firm Refinitiv.
TD Securities analyst Tim James points out that earnings before interest, taxes, depreciation and amortization (EBITDA) are in positive territory for the first time since the pandemic. “This is an encouraging sign of Transat’s ability to pass on rising fuel costs to consumers. »
The action still lost 2 cents, or 0.59%, to $3.36 on the Toronto Stock Exchange in the afternoon.