Transat A.T. has best summer ever
Coming off its best fourth quarter and best summer ever, Transat A.T. Inc. posted revenues of $808.6 million for the quarter ended Oct. 31, compared with $763.4 million in 2012, an increase of $45.2 million, or 5.9%. The Corporation recorded a margin before amortization and depreciation of $80.1 million, compared with $52.9 million in 2012, and net income of $54.7 million ($1.40 per share on a diluted basis), compared with a net profit of $16.6 million ($0.43 per share on a diluted basis) in 2012. Before non-operating items, amortization and depreciation, and restructuring charges, Transat reported a margin of $80.6 million, compared with $52.9 million in 2012, and adjusted after-tax income3 of $54.8 million in 2013 ($1.40 per share on a diluted basis), compared with $28.7 million ($0.75 per share on a diluted basis) in 2012.
For the fiscal year ended Oct. 31, Transat posted revenues of $3.6 billion, versus $3.7 billion in 2012, a decrease of $66.1 million, or 1.8%. The Corporation recorded a margin before amortization and depreciation1 of $110.9 million, versus $17.0 million in 2012, and a net profit of $58 million ($1.51 per share on a diluted basis) compared with a net loss of $16.7 million ($0.44 per share on a diluted basis) in 2012. Before non-operating items, amortization and depreciation, and restructuring charges, Transat reported a margin of $116.6 million, compared with one of $17 million in 2012, and net adjusted after-tax income3 of $62.6 million in 2013 ($1.63 per share on a diluted basis), versus an adjusted after-tax loss of $15.3 million ($0.40 per share on a diluted basis) in 2012.
“We achieved very good results on the transatlantic market and posted profits on the Sun destinations market as well as in France,” said Jean-Marc Eustache (pictured), president and chief executive officer of Transat. “As a result, we had our best fourth quarter ever as well as the best summer in our history. And for the year, we are back to profitability, with a margin improvement of $100 million. Our efforts on all fronts, including costs, product, marketing, revenue management, and so on delivered the expected results. Our cost-reduction and margin-improvement program is tracking to plan.”
Transat is continuing with implementation of the initiatives in its return-to-profitability plan, including measures to reduce operating costs and changes to its systems and processes. In April, the Corporation also announced its decision to internalize narrow-body medium-haul aircraft (Boeing 737-800s) for its Sun destination routes outbound from Canada, starting in May 2014. The various measures (cost-reduction initiatives, additional revenues and efficiency gains) had a favourable impact of $20 million on the margin in 2012 and of $15 million in 2013. The Corporation expects another $20 million in 2014, as well as in 2015, when internalization of the narrow-body fleet will produce its full benefits.
