TRANSAT FEELS THE IMPACT OF UNSETTLED SUMMER MARKET

Posted on 09/09/2016

Transat A.T. Inc. says it's feeling the impact of an unsettled transatlantic travel market this summer, with net income down 28.2 percent and adjusted earnings down almost 91 percent from the same time last year.

The Montreal-based company's net income dropped to $9.4 million or 26 cents per share, from $13.1 million or 34 cents per share in last year's third quarter.
Nearly one-quarter of the third quarter's net income - $2.5 million - was attributed to Transat's 35 percent interest in Ocean Hotels.
Transat says the strength of the US dollar helped increased Ocean Hotel's contribution from $1.6 million last year.
Adjusted profit was $2.5 million or seven cents per share, down from $26.9 million or 70 cents per share and revenue was $663.6 million, down six percent from $704.8 million a year ago.
Transat president and CEO, Jean-Marc Eustache, says this year's third quarter ended July 31 was marked by rapid changes in demand because of terrorism-related fears and a dramatic increase in the travel industry's transatlantic capacity.
Eustache says the company is relatively satisfied with its results given the circumstances, but says there's no hope of a repeat of the “outstanding” performance achieved in the previous two summer seasons.