Friday, March 6th0.1°C
25326
24576

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 TSX15103.11+20.271
S&P CDNX696.92-1.17
DJIA18135.72+38.82
Nasdaq4982.81+15.668
S&P 5002101.04+2.51
CDN Dollar0.80110.00
Gold1196.30-4.2999
Oil52.74+0.19
Lumber287.00-3.70
Natural Gas2.851+0.01

 
Okanagan Companies
Pacific Safety0.13-0.005
Knighthawk0.010.00
QHR Technologies Inc1.65+0.10
Cantex0.035-0.005
Anavex Life Sciences0.184+0.004
Metalex Ventures0.045+0.005
Russel Metals24.27-0.68
Copper Mountain Mining1.240.00
Colorado Resources0.130.00
ReliaBrand Inc0.0065-0.0015
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.22-0.005

 





FEATURED Property
22227591462 Black Mountain Crescent
$639,000
more details
image2image2
Click here to feature your property
Please wait... loading


Refinance your mortgage?

Canadian Mortgage rates are low and could be dropping down in time for the spring market following a drop in the Bank of Canada Rate on January 21 by 1/4% which will save new buyers and those with mo...


Creating your retirement vision

A vision means different things to different people. To the head of a large corporation, it’s the ability to chart a course that will deliver success (think Steve Jobs and Apple), to a shaman, i...


It's OK to say 'I'm sorry'

Photo: ContributedStand-up comedians and sitcoms have been making fun of Canadians for being polite as long as I can remember. Being known for our niceness is certainly not a bad thing and I wish more...

_








Member of BC Press Council


25413