After suspending its air operations for the second time at the end of January, due to the pandemic, Transat AT saw its revenue fall by $563.7 million (98.7%) during the second quarter, to $7.6 million.
For the quarter ended April 30, adjusted net loss was $103.3 million, or $2.74 per share, nearly triple the loss of $38.8 million, or $1,03 per share, in the red in 2020.
Despite a cost-cutting program, COVID-19 has hurt the Montreal-based company, which Air Canada eventually refused to acquire in recent months. Thus, during the first half of the year, Transat AT generated revenue of $49.5 million, a sharp decrease of $1.2 billion (96.1%) compared to the same period last year.
Adjusted operating loss for the first half is $104.6 million, or $5.63 per share, compared to earnings of $48.5 million in 2020, or -1.57 per share.
As of April 30, the Air Transat operator had $346.1 million in its vaults, which is significantly lower than the $733.7 million for 2020. “This decline was primarily due to a significant drop in activity, partially offset by the $170.0 million drawn on the credit facility, she said. Transat AT when it released its results on Thursday.
Remember, Transat AT has entered into an agreement with Ottawa that allows it to borrow up to $700 million in additional liquidity through the Large Employer Contingency Credit (CUGE). Of that amount, $310 million could be used to compensate some customers who were unable to travel due to the pandemic.
He explained, “Deposits received from customers for future trips amounted to $560.4 million, compared to $605.1 million on April 30, 2020, a decrease of $44.7 million.”
Transat AT has a new president and CEO, Annick Guérard, who takes over from Jean-Marc Eustache these days when we can begin to see a way out of the health crisis. Transat AT is also preparing for a gradual resumption of its operations from July 30.
“After a zero-income quarter, progress on vaccination allows us to anticipate a gradual recovery from July 30th. We hope that the Safe Travel Recovery Plan will be deployed as soon as possible and soon lead to the lifting of restrictions. Everything tells us that our customers are eager to travel and set aside a portion of their savings. him in recent months Annick Gerrard said: “We are excited to welcome them again soon.”
The funding we then obtain will allow us to spread our plan over the coming years. Our strong brand, the commitment of our employees, and the transformation we have begun and that will continue over the next few years will allow us to reclaim our position as a leisure travel company dear to our customers’ hearts, and more profitable than before the pandemic.”
Transat AT also announced its intention to refocus its airline activities in the east of the country and in Montreal, as well as enter into alliances with other airlines. The company will also continue to cut costs and abandon the hotel business.