New routes and destinations – but is this the same profit?
Air Transat will expand into the port city of Bordeaux and the port city of Valencia, Spain, to winter, and with the exception of a few routes, the CEO said.
According to airline data company Cirium, the number of airline flights scheduled to take off from Canada to the United States in December fell 13% year-on-year. This month, the figure fell 36% compared to June 2024.
Whether Air Transat’s new route will turn into profit remains to be seen.
Transat’s latest earnings report
Transat, which owns the airline in its latest quarter, reported a loss of $22.9 million, although hit rate is a significant improvement from the $54.4 million loss a year ago.
Challenges for airlines
Now, several obstacles face operators, including competition, frugal customers and fleets are reduced.
“We have shifted with some players in European destinations, which puts pressure on the upcoming summer,” Guérard said. Air Transat is not the only airline to increase transatlantic travel.
“From the past few weeks, we can see that bookings in Europe are soft. Due to the uncertainty of the market (economic environment), this is what we expect.”
Some of these downturns are attributed to more final booking trends.
“People tend to wait and see what will happen – how the economy will move forward if people are going to keep working.”
Device recalls the challenge
Transat also continues to deal with the consequences of the Turbofans recall for inspections and repairs at Enginemaker Pratt & Whitney. Air Transat, one of the many airlines that were called to attack, has taken root at least six planes.
Guérard said she expects to withdraw from commissions within one year.
“We don’t think this situation will be resolved by 2027,” said Chief Financial Officer Jean-François Pruneau.
On the plus side, Pratt & Whitney paid Transat $20 million in the second quarter.
Despite the losses, the company will see revenue growth of 6% year-on-year to $1.03 billion in the three months ended April 30.
Guérard said higher revenue per seat, lower fuel costs, tight cost control and compensation from Pratt and Whitney helped it get closer to breaking.
The Montreal-based company also increased its adjusted net income to 12 cents per share this quarter, compared with a loss of $1.21 a share a year ago. The results soared analysts’ expectations for 92 cents per share, according to data from financial markets company LSEG and analytics companies.
Last week, Transat announced a deal to reduce its total debt with the federal official company to more than half to $334 million. The majority of the reduction was due to the agreement’s consent in principle about $380 million in debt.
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Retailers report $7.9 million in losses and don’t see a “retracement” in consumer spending at all
Roots Corp (TSE: root)
- loss: $7.9 million (loss of $8.9 million last year)
The clothing retailer’s CEO said Friday that consumers are fighting a global tariff war. Meghan Roach told analysts he asked her if she was lagging behind consumer confidence or if the customer was switching to a more affordable product.
Root sales
Roach’s observations are reflected in retailers’ first-quarter results, which show that sales of companies at Toronto-headquartered companies rose 6.7% to $40 million. Most of the boost comes from the company’s direct consumer business, including its retail stores and e-commerce businesses.
Sales in the division totaled $34.6 million for the period ended May 3, up from $31.4 million in the same period last year. The segment also saw comparable sales growth of 14.1%. Roach attributes the addition to existing products that respond well to the company’s latest version as customers.
