Transat A.T., the airline and tour operator, has achieved a significant milestone by recording its first profit since the end of 2019. This comes as the company’s sales experienced a strong rebound following the sharp decline in demand and wave of booking cancellations triggered by the emergence of the Omicron variant of Covid-19.
In the third quarter, Transat generated a revenue of CAD 746.3 million ($550.8 million), marking a substantial 47% increase compared to the previous year. This figure also exceeded the projected mean forecast of CAD 732.2 million from five analysts polled by FactSet.
The company’s net income for the three months ended on July 31 reached CAD 57.3 million, or CAD 1.49 per share, representing a remarkable turnaround from last year’s loss of CAD 106.5 million, or CAD 2.82 per share. On an adjusted basis, Transat achieved per-share earnings of CAD 1.10.
Despite operating at 14% lower capacity, Transat managed to surpass its revenue levels from 2019 by 6.8% in the latest quarter. This was primarily driven by robust demand for leisure travel, which resulted in yields surpassing those of 2019 by an impressive 29%.
This positive financial performance signifies a significant recovery for Transat A.T., showcasing its resilience in navigating the challenges posed by the pandemic.