Transat sees second-quarter profits plunge as Air Canada takeover talks continue
Posted Jun 13, 2019 11:25:20 AM.
This article is more than 5 years old.
MONTREAL — Transat AT Inc. says fuel prices and exchange rates contributed to a major drop in year-over-year profits last quarter, which nonetheless beat analysts’ expectations amid higher revenues.
The tour operator says it incurred an adjusted net loss of $6.31 million in the quarter ended April 30, down from a loss of $456,000 in the same quarter last year.
Adjusted net loss per share fell to 17 cents in the second quarter from one cent during the same period in 2018. That beat analysts’ expectations of a loss of 23 cents per share, according to Thomson Reuters Eikon.
Revenue rose more than three per cent to $897.4 million from $867.2 million.
The Montreal-based company says aircraft fuel costs rose nearly 12 per cent year over year last quarter to $118.9 million.
Transat is currently in exclusive talks with Air Canada, set to end June 26, after the country’s largest airline made a $520-million takeover bid for the business. Last week, Quebec real estate developer Group Mach Inc. outbid Air Canada with a $527.6-million takeover proposal that includes trying to convince the Quebec government to finance nearly one-quarter of the purchase.
Companies in this story: (TSX:TRZ, TSX:AC)
The Canadian Press
