Saturday, October 25th8.6°C
23888
22501

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

22970


Recent Trending




Today's Market
S&P TSX14543.82+56.99
S&P CDNX805.45-3.15
DJIA16805.41127.51
Nasdaq4483.715+30.923
S&P 5001964.58+13.76
CDN Dollar0.8901-0.0003
Gold1231.20+2.10
Oil81.02-0.73
Lumber336.40+6.80
Natural Gas3.631+0.009

 
Okanagan Companies
Pacific Safety0.105-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.07+0.015
Anavex Life Sciences0.194-0.004
Metalex Ventures0.045+0.005
Russel Metals33.39+0.23
Copper Mountain Mining2.03-0.05
Colorado Resources0.145+0.005
ReliaBrand Inc0.012-0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.445+0.035

 





FEATURED Property
2102664408-1329 KLO Road
2 bedrooms 2 baths
$169,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...


We can get on together

I was in LA this week. I witnessed such crazy and unusual circumstances as I strolled along Hollywood Blvd and Sunset Blvd. A far cry from sleepy Peachland in the Okanagan! The strange thing was, I f...


Weakening global growth worries

The Big Picture Growth worries persist Worries about weakening global growth and its potential impact on the US economic recovery roiled markets around the globe this week. Europe continues to be the ...

_








Member of BC Press Council


23691