Transat A.T. posted revenues of $888.2 million for the quarter ended April 30, 2016, compared with $875.2 million in 2015, an increase of $13.1 million, or 1.5%.
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Transat A.T. recorded an adjusted operating loss of $5.0 million, versus an adjusted operating income1 of $7.8 million in 2015, and a net loss attributable to shareholders of $25.0 million ($0.68 basic and diluted earnings per share), compared to a net income attributable to shareholders of $24.7 million ($0.64 basic and diluted earnings per share) in 2015.
Before non-operating items, Transat reported an adjusted net loss of $11.9 million ($0.32 per share) for the second quarter of 2016, compared with $2.7 million ($0.07 per share) in 2015.
Transat A.T. posted revenues of $888.2 million, compared with $875.2 million in 2015.
The increase of $13.1 million (1.5%) was due mainly to an overall 2.5% rise in the number of travellers, and higher average selling prices for all-inclusive Sun destinations packages, Transat's primary market for the period.
During the quarter, the Corporation increased its capacity on Sun destinations routes by 0.7%.
Transat A.T. posted an adjusted operating loss1 of $5.0 million, compared with an adjusted operating income1 of $7.8 million in 2015.
The higher operating loss stemmed mainly from the depreciation of the Canadian dollar vis-Ã -vis the U.S. currency, which, net of the decrease in aircraft fuel costs, resulted in an increase in operating costs of $25.0 million on Sun destinations packages.
Nearly half of that increase was offset by the higher average selling prices. Fears prompted by the Zika virus, the threat of strike action by Air Transat pilots, and a decrease in demand for travel from Western Canada prevented any improvement in profitability.
Ocean Hotels, which is 35% owned by Transat, accounted for $6.3 million of the Corporation's net income for the quarter, compared with $3.7 million in 2015. The increase was due to the strength of the U.S. dollar versus other currencies.
Transat's equity participation in Ocean Hotels accounted for $101.9 million in assets as at April 30, 2016, after deduction of the $6.7 million dividend amount received during the past 12 months, compared with $94.5 million as at April 30, 2015.
During the quarter, the Corporation recorded an impairment charge of $15.8 million, resulting from the introduction of a new booking platform encouraging purchase of seats by European travellers directly from Air Transat, rather than through the European business units.
The charge also reflects the recent refocusing on the Transat brand, which has brought about the elimination of certain other brands. ■