Loss of 49.6 million for Transat

Perte de 49,6 millions pour Transat

Photo: Andrew Thomas, Creative Commons
The action of Transat has dropped by 50¢, or 9.4%, to 4.85$ Thursday. This course gives a market capitalization of 182,6 million to the tour operator.

Transat A. T. was not able to erase the depressing effects of the falling dollar and the rising costs of fuel. His first quarter resulted in a loss of 49.6 million.

The integrated tour operator has registered an operating loss of $ 37.7 million in the first quarter ended January 31, 2019, increase over the $ 28.8 million for the corresponding quarter of the previous year on revenues relatively unchanged, 647,6 million. “This variation results mainly from the increase in our operating costs following the depreciation of the us dollar against the u.s. dollar and the increase in fuel prices as well as additional costs related to the transition and optimization of the aircraft fleet of the company. This increase in our operating costs was not fully offset by increased average selling prices on the sun destinations market, ” says Transat, which continues the transformation of its fleet around the integration of the A321 long-range action.

The results also highlight a more sensitive demand for flights like this that live the european tour operators face to holidaymakers reserving more and more only their stays. “On the sun destinations market, the number of passengers rose 3.5%, and the proportion of flights that are sold without land portion was on the increase, these income-generating unit higher than those of packages,” says Transat. The average selling prices of tour packages were up 2.8 %, but those flights were down 0.9 %.

In the end, the tour operator has recorded a net loss of 49.6 million, or $ 1.32 per share, compared to $ 3.2 million, or 9 ¢ a share a year earlier. This latter result is net of 2018 included a gain of 31.3 million following the sale of the subsidiary Jonview.

Transat has stressed that the expansion hotel is progressing according to plan. The balance sheet, the results take into account the purchase of land in Mexico at a price of 76 million to build a hotel in Puerto Moreles, whose opening is expected by the end of 2020. Discussions are ongoing for the purchase of land in the Riviera Maya and in Punta Cana, combined with the conclusion of contracts of management. At 31 January cash and cash equivalents thus stood at 620,4 million, compared to 749,3 million a year earlier.

The action of Transat has dropped by 50 ¢, or 9.4 %, to 4.85 $ Thursday. This course gives a market capitalization of 182,6 million to the tour operator.