Air Transat reports first profit since 2019 – expects limited effects GTF issues

Transat AT, the Canadian parent of leisure company and airline Air Transat, produced its first quarterly operating and net profits since Q4 2019. The airline benefitted from strong demand for travel and responded by ramping up capacity on the network.

The group reported a consolidated adjusted net profit of C$42.3 million compared to C$-120.9 million in its third quarter, which ran from May-July. Total revenues were up by 47 percent to C$746.3 million from C$508.3 million, thanks to 19 percent higher capacity and strong demand. This pushed the load factor up by nine percent and yields by 29 percent year on year, largely explained by the mismatch between demand and supply.

EBITDA or the adjusted operating profit was C$114.8 million versus C$-57.8 million last year and was 85 percent higher than in Q3 2019. Higher fares in combination with lower fuel costs were major contributors to the result. Free cash flow was still negative at C$-52.1 million but is a positive C$246.1 million for the nine-month period until July 31.