The fast-paced airline recovery continues in Canada, with a strong financial report today from Transat A.T. Inc.
“For the second quarter of 2023, Transat reported a solid performance, with an adjusted operating income of $56.1 million, nearly 40% higher than in the same quarter of 2019,” said officials from the company, which runs Montreal-based Air Transat. “At mid-year, and based on current booking trends, we are raising the target for the adjusted operating income margin from the initially set range of 4% to 6% to a target of 5.5% to 7% for the fiscal year.”
“Several factors contributed to the Corporation’s favourable results. Firstly, the demand for leisure travel, which is Transat’s primary niche, is holding steady. This high volume of activity is driving prices up, resulting in 15% increases at the beginning of the quarter, and almost 24% at the end of the quarter, compared with the same period in 2019.
Air Transat plane. Photo Courtesy Air Transat.
“In addition, Transat actively continued its fleet optimization plan, deploying in winter 2023 a capacity comparable to winter 2019 with 20 fewer aircraft in service. Better price management, thanks to improved practices and new tools, has also helped to maximize revenues and seize market opportunities,” officials said.
“Transat also relied on continuous improvement in its operational efficiency throughout the quarter.
“With more than 60% of our capacity sold, the stage is set for a dynamic summer. Transat will deploy for the summer a capacity representing 89% of its 2019 level, with Europe comprising 80% of the activity, leveraging the most profitable routes for Transat,” said Annick Guérard, President and Chief Executive Officer of Transat.
