The recovery in the airline industry comes with downsides for travelers wishing to fly abroad: more expensive tickets due to soaring fuel prices and longer wait times than usual with customer service for a few more months in case of unforeseen events.
Posted at 3:12 p.m.
Like Air Canada, Transat AT wants to pass on the increase in its expenses “as much as possible” to consumers through fare adjustments and other tools, such as a fuel surcharge, explained the president and chief executive of the Quebec tour operator, Annick Guérard, Wednesday, on the sidelines of the annual meeting of shareholders.
The increases vary by market and the strength of competition, Ms.me Guerard. Customers of Air Transat’s parent company pay an extra $20 to $40 per ticket for kerosene — the airlines’ biggest expense.
“It (the overload) has increased in recent weeks and it will continue to increase if the fuel does not stop climbing,” she said, by videoconference, accompanied by members of the senior management of the tour operator.
PHOTO DAVID BOILY, LA PRESSE ARCHIVES
Annick Guérard is President and Chief Executive Officer of Transat AT
According to data from the International Air Transport Association (IATA), as of April 22, the price of airline fuel had jumped 119% compared to last year. After soaring in the wake of Russia’s invasion of Ukraine, prices contracted 5.5% in April.
In Canada, the average price for a round-trip ticket to an international destination is currently around $940, according to the Montreal application Hopper, which specializes in ticket reservations. This is a 19% increase from pre-pandemic prices.
In unveiling its first quarter results on Tuesday, Air Canada’s senior management also mentioned price adjustments to absorb the dizzying rise in its energy bill. The company also explained that fuel surcharges as well as fee increases for services such as baggage and meals were among the options being considered.
“The ability to pass on fare increases and optimize our spending is key to managing this market disruption,” said Amos Kazzaz, Air Canada’s Chief Financial Officer.
Catching up
Flight delays, postponements and cancellations have multiplied since the start of the pandemic, which has tested the patience of travelers. They often had to wait several hours before being able to speak to a customer service representative because airline call centers were unable to meet the demand.
Transat AT is part of the group. Over the past few months, La Presse has received several testimonials from clients who have found themselves in this unfortunate situation. It will still take some time before the situation returns to normal, admitted Mr.me Guerard.
“The service is acceptable, but it still doesn’t meet our quality standards,” she says. I would say that at the beginning of the summer, if we meet our recruiting objectives, we should return to a normal state where we respond within a minute. »
In a message sent to her customers last November, the president of Transat AT described the delays as “unacceptable”. The return to normal was expected “soon”.
SCREENSHOT
Wait times are always long to speak to customer service at Transat AT
Six months later, a message indicating that wait times “are much longer than usual” is still clearly visible on Air Transat’s website. The company has on the side of Air Canada, where the patience of the customers has also been tested in recent months, the delays of the service centers are “longer”, we warn. Wednesday afternoon, the largest air carrier in the country had not responded to questions from La Presse about delays.
At Transat AT, a call center employee who requested anonymity for fear of reprisals from his employer recently explained to La Presse that recruitment was difficult, that staff turnover was high and that training was condensed.
“In-person training generally takes six weeks and I had a three-week training in teleworking, explained this person. They (Transat) hire a lot, but it’s not for everyone. There are fewer and fewer travel credits to process, which speeds up the process. »
Over the “recent months”, the tour operator has added about 100 agents to its call center, which has around 300 people, said its spokesman, Christophe Hennebelle. Fifty additional hires are planned.
More money from Ottawa?
After borrowing 43.3 million more from the federal government, Transat AT is still talking to Ottawa to get more money to try to recover from the pandemic. The company did not specify the sum, but it will be more “modest” than the 700 million made available to it last year. To reduce expenses, the tour operator has halved the size of its Montreal headquarters, which occupies six floors. The company had 5,800 employees before the health crisis. The tour operator’s workforce should oscillate around 5,000 employees when it returns to its pre-pandemic level of activity, according to its president and chief executive officer, Annick Guérard. This reduction will be possible thanks to a “revision” of the “organizational structure” of the company.
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- 3400
- This is the current workforce of Transat AT The tour operator had approximately 5,800 employees before the COVID-19 pandemic.
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