MONTREAL – Transat AT posted a loss in its latest quarter, including the Christmas holiday period, despite higher revenue as the weak Canadian dollar hurt its results.
The travel company said the loonie’s weakness against the U.S. dollar led to higher overall costs that weren’t completely offset by lower fuel prices or more average prices for its services.
The loss for that first quarter of its financial year was $61.2 million, or $1.64 per share, Transat said. That compared with a loss of revenue of $64.3 million or $1.66 per be part of the year ago quarter.
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The company said the advance to its bottom line was due to non-operating items for example fuel and currency hedging.
Otherwise, the Montreal-based company’s adjusted loss would have increased to $37.3 million or $1 per share from $32.4 million or 84 cents per share last year, despite a seven percent increase in revenue.
Revenue rose to $846.9 million within the quarter ended Jan. 31, from $788.Six million last year.
“During the first quarter, the net increase in the price of packaging all-inclusive Sun destinations vacations was $24 million, and was just partly absorbed by consumers,” Transat president and CEO Jean-Marc Eustache said inside a statement.
“The dollar, the Zika virus, the possibility of strike action by our pilots, which has now been averted, a fiscal slowdown and fairly mild weather conditions are all factors that make the current winter months challenging.”
