Canada-based travel operator Transat A.T. Inc. (TRZ_A.TO,TRZ_B.TO) on Thursday reported a wider loss for the second quarter on one-time charges and lower revenues that reflected the company's decision to reduce capacity on its markets.
However, adjusted loss was narrower than analysts' estimates, while revenues missed their expectations. Looking ahead, the company said it expects to return to profitability in fiscal 2013.
Jean-Marc Eustache, President and Chief Executive Officer of Transat said, "We reached our cost-reduction targets, and despite a challenging winter selling prices were higher than last year, hence the improvement in our results. The summer is looking fairly good and we expect to be back to profitability this year."
Transat's second-quarter net loss attributable to shareholders was C$22.76 million or C$0.59 per share, wider than loss of C$13.20 million or C$0.35 per share in the year-ago period.
The latest quarter's results include a non-realized charge, excluding taxes, of C$18.45 million stemming from the mark-to-market accounting of fuel-hedging contracts. This compared with a favorable variance of C$3.11 million in the prior-year period.
Adjusted after-tax loss for the quarter was C$1.43 million or C$0.04 per share, compared to adjusted loss of C$24.54 million or C$0.64 per share in the previous-year quarter. On average, five analysts polled by Thomson Reuters expected the company to report loss of C$0.33 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter declined 8 percent to C$1.11 billion from C$1.21 billion in the prior-year quarter. Analysts had a consensus revenue estimate for the quarter of C$1.16 billion.
The decline in revenues were mainly due to the company's decision to reduce capacity on its markets and hence, a 13.7 percent reduction in the number of travelers.
Looking ahead, Transat expects to record better results than last year for the second half, and an after-tax adjusted income for fiscal 2013. Analysts expect the company to report earnings of C$0.28 per share for the full-year.
TRZ_B.TO closed Wednesday's trading on the Toronto stock exchange at C$5.31, up C$0.01 or 0.19 percent.
For comments and feedback contact: editorial@rttnews.com
Business News
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.