December 4, 2022

The Queens County Citizen

Complete Canadian News World

Difficult recovery for Air Transat

Difficult recovery for Air Transat

Despite its revenue growth in the first quarter of 2022, Transat was upset with the Omicron variant in its takeover plans.

The airline reported an operating loss of $ 73.8 million for the quarter ended January 31, 2022, compared to a loss of $ 98 million for the corresponding quarter of 2021.

The net loss to shareholders was $ 114.3 million or $ 3.03 per share, compared to $ 60.5 million or $ 1.60 per share for the corresponding quarter of 2021.

In addition, Air Transat’s revenue rose $ 160.5 million to $ 202.43 million for the quarter ended January 31, 2022.

According to Air Transat, these figures are attributed to the appearance of the Omicron variant and the restrictive measures associated with the epidemic. “While we are engaged in a strong recovery, the results came in November and December in line with our targets. Our sales were suspended between mid-December and early February due to the appearance of the Omicron variant,” said Ennik Gurard, Transat president and chief executive officer, in a press release.

“We will be in a cash-strapped state for months to come, and we are also in talks with the federal government for additional funding,” Ms. Guérard added, being able to remember about 500 employees since then. November.

“After easing the restricted border measures, bookings have resumed their upward trend in both winter and summer, which is a good sign for the coming months,” she said.

Ms. Guérard explains in the short term, “saving our money and accessing the liquidity needed to overcome this period of uncertainty is a priority”, but the effects of COVID-19 are still being felt and “the geopolitical situation is constantly changing.”

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Air Transat said it was “impossible to predict the impact of the Kovid-19 epidemic on future reservations at this time, as well as on financial outcomes” and for the second quarter or the summer of 2022 due to this uncertainty.