Although it saw an increase in its revenue in the first quarter of 2022, Transat was irritated by the Omicron variant in its acquisition plans.
The airline reported an operating loss of $73.8 million for the quarter ended January 31, 2022, compared to a loss of $98 million in the corresponding quarter of 2021.
Net loss attributable to shareholders was $114.3 million, or $3.03 per diluted share, compared to a loss of $60.5 million, or $1.60 per diluted share, in the corresponding quarter of 2021.
Additionally, Air Transat’s revenue increased $160.5 million to $202.43 million for the quarter ended January 31, 2022.
According to Air Transat, these numbers are attributed to the emergence of the Omicron variant and the restrictive measures linked to the pandemic. “While we were engaged in a strong recovery, with results in November and December in line with our goals, the emergence of the Omicron variant represented a pause in our sales between mid-December and early February.” Annick Guérard, President and CEO of Transat, said in a press release.
Ms Gerrard added: “As we will remain on cash for the coming months, we are also in discussions with the federal government for additional funding.” November.
“After the easing of restrictive border measures, bookings have resumed their upward trend, for both winter and summer, which bodes well for the coming months,” she said.
Ms Girard explains that in the short term, “the priority is to protect our cash and access the liquidity needed to weather this period of uncertainty” while the effects of COVID-19 are still being felt and that “the geopolitical situation is constantly changing.”
Air Transat states that “it is currently impossible to predict the impact of the COVID-19 pandemic on future reservations, as well as on financial results” and that due to this uncertainty, it does not intend to provide forecasts for the second quarter nor for summer 2022.
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