Saturday, November 22nd-1.1°C
24124
23778

Transat reduces net loss to $7.9 million on revenues of $1.1 billion

MONTREAL - Package tour comany Transat A.T. Inc. (TSX:TRZ.A) reduced its net loss to $7.9 million for the second quarter from $22.8 million in the year-ago period as revenues rose one per cent to $1.1 billion.

The parent company of airline Transat said Thursday the results for the quarter and the winter are slightly better than it expected, despite a sudden drop in value of the Canadian dollar that led to a significant increase in operating expenses.

Those were up by $22 million.

The loss amounted to 20 cents per share for the quarter ended April 30, compared with 59 cents per share in the same quarter last year.

Transat says its adjusted operating loss came to $4 million, compared with an adjusted operating profit of $2.7 million in 2013, and was attributable "entirely" to the decline in value of the Canadian dollar against the U.S. dollar.

"It was a peculiar winter," chief executive Jean-Marc Eustache said in a news release.

"In December, margins were higher year-over-year and we were heading toward a performance improvement. The sudden drop in value of the Canadian dollar provoked a significant increase in operating expenses that reversed the situation, as it came early in the season, when the market resists increases in selling prices."

During the quarter, Transat reduced capacity on its sun-destination routes by 3.5 per cent, which contributed to a 5.3 per cent overall decrease in the number of travellers.

Average selling prices were up, and the euro and pound traded higher against the Canadian dollar.

Transat says the combined effect of increased selling prices and cost controls weren't enough to offset the effect of those increased expenses.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX15111.13+35.95
S&P CDNX789.135.56
DJIA17810.0691.06
Nasdaq4712.97+11.102
S&P 5002063.50+10.75
CDN Dollar0.8901-0.0002
Gold1201.50+10.60
Oil76.72+0.87
Lumber331.50+4.50
Natural Gas4.236-0.253

 
Okanagan Companies
Pacific Safety0.155-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.30+0.03
Cantex0.04+0.005
Anavex Life Sciences0.178+0.008
Metalex Ventures0.03+0.005
Russel Metals31.62+0.82
Copper Mountain Mining2.24+0.06
Colorado Resources0.125-0.015
ReliaBrand Inc0.013-0.002
Sunrise Resources Ltd0.050.00
Mission Ready Services0.35+0.015

 
23744


24120

FEATURED Property
20586535550 Finch Road
10087429 bedrooms
$1,495,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...


Retirement: Health Issues

Our health is really our greatest asset and maintaining our health is of tremendous importance. You want to do what you can to ensure that health issues will not jeopardize the enjoyment of your retir...


Be quiet already!

No, you’re not crazy. There really are voices in your head. Voices that keep you from doing what you need to do during your customer care calls. It can be the voice of your teachers, your parent...

_



24207

24207


Member of BC Press Council


24018