Labour and engine woes push Transat to a loss as travel company curtails expansion

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Belgique Dernières Nouvelles,Belgique Actualités

MONTREAL — Transat A.T. Inc. felt the headwinds of stiff competition, engine recalls and the threat of a union strike last quarter, which together conspired to drain more money from the struggling tour operator.

Transat nearly doubled its losses to $54.4 million in the three months ended April 30 compared with the same period a year earlier. More cash departed its coffers despite a 12 per cent year-over-year boost in revenue, fuelled by an increase in passengers.

They also resulted from"intensified competition" on routes to sun destinations and the drawn-out possibility of a work stoppage, the Montreal-based company said. Air Transat is also among the carriers facing serious knock-on effects from the recall of Pratt & Whitney turbofan jet engines for inspection and repair.

Transat also launched on Wednesday the first phase of its joint venture with Porter Airlines that Guérard hopes will yield benefits via access to its partner's rapidly growing network in Canada and the United States.

 

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Belgique Dernières Nouvelles, Belgique Actualités

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Travel company Transat A.T. reports Q2 loss, revenue up from nearly 12% from year agoMONTREAL — Transat A.T. Inc. reported a loss of $54.4 million in its latest quarter as its revenue rose nearly 12 per cent compared with a year ago.
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