Tag Archives: Air Transat

Transat A.T. Inc. reported an adjusted 4Q net loss of $118.4 million

Air Transat’s parent issued this report for the fiscal fourth quarter:

Encouraging signs since the resumption on July 30

For the fourth quarter:

  • Revenues of $62.8 million
  • Adjusted operating loss1 of $58.4 million (operating loss of $118.3 million)
  • Adjusted net loss1 of $118.4 million (net loss attributable to shareholders of $121.3 million)

For the year:

  • Revenues of $124.8 million
  • Adjusted operating loss1 of $213.9 million (operating loss of $401.2 million)
  • Adjusted net loss1 of $446.4 million (net loss attributable to shareholders of $389.6 million)

Financial position and financing:

  • Cash and cash equivalents of $433.2 million as at October 31
  • In total, the available financing represents a maximum of $820.0 million, of which $650.0 million was drawn down as at October 31, 2021

Transat A.T. inc., a holiday travel reference worldwide, particularly as an air carrier under the Air Transat brand, announces its results for the fourth quarter and fiscal year ended October 31, 2021.

“Since we resumed operations on July 30, business has been growing steadily. We met and exceeded our targets for resumption of operations in the last quarter and reduced our use of cash. The winter season that is now beginning will see the continuation of our return to more significant volumes. While we remain cautious given the evolving variants, we remain optimistic that we’re on track to returning to normal. Meanwhile, we’re continuing our transformation. Following the extensive streamlining of our fleet that has been ongoing for several years, the codeshare agreement announced this quarter is the first step forward in our alliance strategy, with further advances to follow in the coming months,” stated Annick Guérard, President and Chief Executive Officer, Transat.

“For the winter, we plan to operate from eight Canadian airports to eight destinations in Europe, 22 in the South and five in the United States, including Miami and Fort Myers, where we’ll be flying for the first time. To do that, we will be deploying capacity that will grow from 50% to 75% of pre-pandemic capacity over the winter. We will then build volume further for the summer season, which will include two new routes to Europe and two new destinations in the United States.

“We started 2022 with over 2,000 employees, compared with only 750 at the height of the crisis, and the volume we project will allow us to recall about 1,500 more during the year. It’s heartwarming to see our employees gradually taking back up their positions with us. They are the reason that Transat is what it is today, and they are the ones who will build tomorrow’s growth and success,” Ms. Guérard concluded.

Fourth-quarter highlights

For the fourth quarter, the Corporation generated $62.8 million in revenues, up $34.4 million (120.9%) from $28.4 million for the corresponding period of 2020. This increase results from the partial resumption of operations at a higher level in 2021 compared with 2020. The Corporation continues to closely monitor demand in order to adjust capacity, which remains below 2019 levels since the resumption of airline operations on July 30.

Operations generated an operating loss of $118.3 million, compared with $239.3 million in 2020, an improvement of $121.0 million. In 2021, the operating loss was aggravated by special items of $20.3 million, including an aircraft impairment charge of $9.1 million, termination benefits of $6.7 million and impairment of contract balances of $4.5 million, comprising mainly prepaid expenses related to commissions paid to travel agents and credit card fees. In 2020, the operating loss was aggravated by special items totaling $96.7 million and unfavorable settlements of fuel-related derivative contracts. Transat reported an adjusted operating loss1 of $58.4 million compared with $90.7 million in 2020, an improvement of $32.4 million. This improvement is related to higher load factors across all of our markets based on increased capacity and unfavorable settlements of fuel-related derivative contracts in 2020.

Net loss attributable to shareholders amounted to $121.3 million or $3.21 per share (diluted) compared with $238.1 million or $6.31 per share (diluted) for the corresponding quarter of last year. In 2020, the net loss attributable to shareholders was aggravated by special items totaling $96.7 million and unfavorable settlements of fuel-related derivative contracts. Excluding non-operating items, Transat reported an adjusted net loss1 of $118.4 million or $3.14 per share for the fourth quarter of 2021, compared with $156.4 million or $4.14 per share in 2020.

Fiscal year highlights

For the fiscal year as a whole, the Corporation recognized revenues of $124.8 million, a decrease of $1.2 billion (90.4%) compared with 2020. Since mid-March of 2020, restrictions on international travel and government-imposed quarantine measures have made travel sales very difficult. Due to the global  COVID-19 pandemic, the Corporation suspended its airline operations on January 29, 2021 for the second time since March 2020, until their partial resumption on July 30, 2021. For the first half of winter, demand was very weak and the Corporation’s capacity represented a fraction of the 2020 level. These factors caused the fall in revenues. Conversely, for the summer season, since the partial resumption of airline operations, demand has been growing steadily and load factors have been higher compared with 2020. However, the Corporation’s capacity remained lower than in 2019.

In 2021, operations generated an adjusted operating loss of $401.2 million compared with $426.0 million in 2020, an improvement of $24.7 million. Transat reported an adjusted operating loss1 of $213.9 million compared with $122.2 million in 2020, a deterioration of $91.7 million.

Net loss attributable to shareholders amounted to $389.6 million or $10.32 per share (diluted) compared with $496.5 million or $13.15 per share (diluted) for the previous year. Excluding non-operating items, Transat reported an adjusted net loss1 of $446.4 million or $11.83 per share for the year ended October 31, 2021, compared with $355.3 million or $9.41 per share in 2020.

Financial position

As at October 31, 2021, cash and cash equivalents amounted to $433.2 million, compared with $426.4 million on the same date in 2020.

In total, the available financing represents a maximum of $820.0 million, of which $650.0 million was drawn down as at October 31, 2021. Of the drawn down amount, a total of $310.0 million was used to repay travelers who were scheduled to leave after February 1, 2020, for which a travel credit had been issued due to  COVID-19 and who had requested to be reimbursed.

Deposits from customers for future travel amounted to $292.2 million, compared with $608.9 million as at October 31, 2020, a decrease of $316.7 million. This change was due to refunds of travel credits made during the summer of 2021.

On April 29, 2021, the Corporation entered into an agreement with the Government of Canada that allows it to borrow, among others, an amount of $310.0 million to issue refunds to eligible travelers. Customers had until August 26, 2021 to submit their refund requests. The Corporation received requests for about $460.0 million and made refunds for approximately 99% of amounts claimed as of late November 2021.

The working-capital ratio was 1.14, compared with 0.84 as at October 31, 2020. The improvement in working capital resulted mainly from the travel credits refunded during the year and financed partly by the drawdowns on credit facilities.

Off-balance-sheet arrangements, excluding contracts with service providers, stood at $549.8 million as at October 31, 2021. This amount mainly consists in commitments to take delivery of the seven A321neo LRs undelivered as at that date.

Outlook

Across all of our markets, average capacity for winter 2022 is 60% of 2019 capacity, increasing from 50% to 75% over the course of the season. On the sun destinations program, the Corporation’s main program for winter season, Transat’s capacity in 2022 represents 55% of 2019 capacity. On the transatlantic program, where it is the low season, Transat’s capacity represents 65% of 2019 capacity. In addition, the Corporation is increasing its presence in the cross-border market with capacity growth of 45% compared to 2019 winter season capacity.

The Corporation continues to apply a series of operational, commercial and financial measures, including cost reduction, aimed at preserving its cash. The Corporation continues to monitor the situation daily to adjust these measures as it evolves.

Despite recent uncertainty related to the emergence of a new variant, the current situation shows encouraging signs such as the level of bookings observed and the increase in the vaccination rate. However, it remains impossible for the moment to predict the impact of the COVID-19 pandemic on future bookings, and on financial results. Consequently, for now the Corporation is not providing an outlook for winter 2022.

Changes to the Board of Directors

Messrs. Jean-Yves Leblanc and Louis-Marie Beaulieu informed the Corporation that they will cease to act as directors effective December 31, 2021. At the meeting of December 8, 2021, in order to fill these vacancies, the Board appointed Mr. Daniel Desjardins and Ms. Julie Tremblay to the Board, effective January 1, 2022. Further, Mr. Desjardins was also appointed to the Audit Committee and Ms. Tremblay was appointed to the Human Resources and Compensation Committee effective January 1, 2022.

Due to Mr. Leblanc’s departure, at its meeting of December 8, 2021, the Board of Directors appointed Ms. Lucie Chabot as Chair of the Audit Committee effective January 1, 2022.

Daniel Desjardins, Ad.E, is an independent director. Mr. Desjardins is an accomplished business lawyer and executive with extensive experience in business law, compliance and risk management, as well as decades of experience in financing and complex mergers and acquisitions.For more than 20 years, until December 2019, Mr. Desjardins was Senior Vice-President, General Counsel and Corporate Secretary at Bombardier Inc. From 2018 to January 2021, he served as Chair of the Board of Directors of Bombardier Transportation. Mr. Desjardins has been Chair of the Board of the Legal Leaders for Diversity Trust since 2014 and is Chair of the Board of Directors of the Pointe-à-Callière museum. Mr. Desjardins has received numerous professional recognitions and has twice been named one of Canada’s 25 most influential lawyers. In 2017, the Barreau du Québec awarded him the Advocatus Emeritus distinction in recognition of his exceptional professional career. Mr. Desjardins holds a law degree from the Université de Montréal and a Master of Laws degree from McGill University.

Ms. Julie Tremblay served as President and CEO of TVA Group and CEO of Quebecor Media Group and as a member of the TVA Group Board of Directors from July 2014 until her retirement in October 2017. Between 1989 and 2014, she held various senior positions within Quebecor Inc., notably as Vice President, Human Resources of Quebecor Inc. and Quebecor Media Inc. for more than eight years, as well as Chief Operating Officer and then President and Chief Executive Officer of Sun Media Corporation. Prior to joining Quebecor Inc., Ms. Tremblay practiced labour law and employment law with a prominent Montreal law firm. She has also been a director of Fondation Montreal, the Society for the Celebrations of Montréal’s 375th Anniversary and the Chamber of Commerce of Metropolitan Montréal. Ms. Tremblay holds a Bachelor’s degree in Political Science from McGill University and a Bachelor’s degree in Civil Law from Université de Sherbrooke.

 

Air Transat launches a virtual interlining service: connectair by Air Transat

Air Transat has announced the launch of its new connectair by Air Transat service. Using this virtual interlining platform, travelers can now combine Air Transat flights with flights from partner airlines such as easyJet and Avianca to travel to even more destinations in EuropeNorth Africa, the Middle East, and Central and South America. Additional partners will gradually join the platform to enrich the range of destinations.

With a single booking on the connectair.airtransat.com website, travellers can access a wider range of destinations using the technology developed by Dohop, which offers the best connection options and attractive fares depending on the departure and destination cities. The booking also includes a protection in case of flight delay or cancellation, ensuring that travellers arrive at their destination as quickly as possible. This guarantee, called Dohop Connect, will provide a replacement flight at no extra cost.

Air Transat and WestJet to cooperate on transatlantic codeshare

Air Transat and WestJet, two of Canada’s leading airlines, have agreed to cooperate on a codeshare that will soon allow customers to book transatlantic travel involving both carriers on a single ticket with through-checked bags. The cooperation will bring more choice to consumers by enabling transatlantic codeshare connections above and beyond what the carriers offer with their own flights.

WestJet’s code will be placed on Air Transat flights to select cities in Europe, and likewise Air Transat’s code will be placed on select WestJet flights in North America to enable both carriers to offer the connecting transatlantic itineraries.

The codeshare agreement is scheduled to be implemented in early 2022, subject to receipt of all customary regulatory approvals.  Additional details and benefits will be communicated once finalized.

Air Transat announces its summer 2022 flight program

Air Transat has announced its flight program for the summer of 2022. At the height of the season, it will operate more than 250 flights each week to 44 destinations. It will gradually increase its service to Europe, strengthen its position in the United States by offering flights to Los Angeles and San Francisco for the first time, offer a selection of its most popular South destinations, and enhance its domestic flight program.

An expanded Europe flight program

From Montreal, the airline will offer 7 direct flights weekly to LondonGatwick and 14 to Paris. It also plans to restart operations to the French provinces, with service to BordeauxLyonMarseilleNantesNice and Toulouse. A total of 19 European destinations will be accessible via direct service from Montreal, including a new route to Amsterdam.

Air Transat will also strengthen its position as the leading international carrier departing from Jean Lesage Airport in Quebec City by offering exclusive non-stop flights to two European capitals: Paris and, for the first time, London.

From Toronto, in addition to 14 weekly flights to London, travellers will also be able to fly to 13 other key European destinations in CroatiaFranceGreeceIrelandItalythe NetherlandsPortugalSpain and the U.K.

Number of weekly direct peak-season flights to Europe

Destination

From
Montreal

From
Quebec City

From
Toronto

AMSTERDAM, the Netherlands

3

4

ATHENS, Greece

3

3

BASEL-MULHOUSE, Switzerland

1

BARCELONA, Spain

3

2

BORDEAUX, France

4

BRUSSELS, Belgium

3

DUBLIN, Ireland

5

GLASGOW, United Kingdom

4

LAMEZIA, Italy

1

LISBON, Portugal

5

5

LONDON, United Kingdom

7

1

14

LYON, France

4

MADRID, Spain

3

MALAGA, Spain

2

MANCHESTER, United Kingdom

4

MARSEILLE, France

5

NANTES, France

3

NICE, France

2

PARIS, France

14

3

4

PORTO, Portugal

2

3

ROME, Italy

4

5

TOULOUSE, France

4

VENICE, Italy

2

1

ZAGREB, Croatia

2

United States: focus on California and Florida

From Montreal, Air Transat will introduce a new direct service to California with two flights a week to San Francisco and three to Los Angeles. It will also intensify its service to Florida by operating flights between Montreal and Miami throughout the year, in addition to flying to Fort Lauderdale and Orlando from both Montreal and Toronto.

Finally, travelers from Quebec City will now be able to enjoy direct flights to Fort Lauderdale/Hollywood year-round.

Number of weekly direct peak-season flights to the U.S.

Destination

From
Montreal

From
Quebec City

From
Toronto

FORT LAUDERDALE, Florida

4

1

4

LOS ANGELES, California

3

MIAMI, Florida

3

ORLANDO, Florida

2

3

SAN FRANCISCO, California

2

The South all year

Because Canadians are fond of South getaways even during the summer, Air Transat will offer a selection of its most popular destinations in Mexico and the Caribbean out of MontrealQuebec City and Toronto.

Number of weekly direct peak-season flights to sun destinations

Destination

From
Montreal

From
Quebec City

From
Toronto

CANCÚN, Mexico

4

1

5

CAYO COCO, Cuba

2

2

HOLGUIN, Cuba

1

1

MONTEGO BAY, Jamaica

1

PORT-AU-PRINCE, Haiti

2

PUERTO PLATA, Dominican Republic

2

1

PUNTA CANA, Dominican Republic

5

1

5

SAMANA, Dominican Republic

1

SANTA CLARA, Cuba

2

2

VARADERO, Cuba

2

2

More domestic flights and connections

By closely observing the market and emerging travel trends, Air Transat is convinced that the popularity of travel within Canada will still be strong in the summer of 2022, which is why it will continue to enhance its domestic flight program.

These flights will also provide many Canadians with access to international destinations via connections in Toronto and Montreal.

Number of weekly peak-season domestic flights

City-pair

Number of
flights

MONTREAL–CALGARY

8

MONTREAL–QUEBEC CITY

5

MONTRÉAL–TORONTO

15

MONTRÉAL–VANCOUVER

10

TORONTO–CALGARY

8

TORONTO–VANCOUVER

10

Air Transat may have to modify its flight schedule subject to the changing COVID-19 situation and resulting travel restrictions.

Air Transat announces an offtake agreement for 90% of the sustainable e-fuel produced by SAF+ in its first plant over the first 15 years of operation

Air Transat A.T. Inc. and SAF+ Consortium are proud to announce an offtake agreement for 90% of the sustainable e-fuel produced by SAF+ in its first plant over the first 15 years of operation. The agreement, which also includes support for the project’s development, confirms Air Transat’s desire to reduce its environmental footprint and continue its actions to combat climate change by becoming the first airline in Canada to reserve a significant volume of e-fuel over a long period of time.

SAF+ recently announced one of the first productions of sustainable aviation fuel in North America. SAF+’s goal is to bring to market by 2025–2026 a synthetic kerosene whose carbon footprint is 80% lower than fossil kerosene by capturing 120,000 tonnes of CO2 per year. SAF+’s technology involves producing a synthetic liquid fuel by capturing and combining CO2 from industrial sources with green hydrogen produced in Quebec. While there are several types of sustainable fuels, e-fuel is a particularly promising avenue because it does not compete with other uses for its raw material.

Video:

AIr Transat to fly from Quebec City to London Gatwick

Air Transat Airbus A321-271NX WL C-GOIE (msn 8755) BSL (Paul Bannwarth). Image: 946809.

Air Transat has announced that it will offer an exclusive non-stop service between Quebec City and London. From May 11 to September 28, 2022, travelers from the province of Quebec’s Capitale-Nationale region will be able to benefit from weekly direct flights to London’s Gatwick airport, making it easier than ever to discover this must-see European destination. At the same time, British tourists will now have direct access to magnificent Quebec City.

Photo: From left to right: Joseph Adamo, Chief Sales and Marketing Officer, Transat; Stéphane Poirier, President and CEO of Québec City Jean Lesage International Airport (YQB); Geneviève Guilbault, Quebec Deputy Premier, Minister of Public Security and minister responsible for the Capitale-Nationale; Caroline Proulx, Minister of Tourism and minister responsible for the Lanaudière and Bas-Saint-Laurent regions; Robert Mercure, General Manager of Destination Québec cité (CNW Group/Transat A.T. Inc.)

London-bound passengers will travel on the new-generation Airbus A321neo LR aircraft, which are perfectly aligned with the company’s ongoing efforts in responsible tourism, including a commitment to achieve carbon neutrality by 2050. They consume 15% less fuel, and reduce both noise and NOx greenhouse gas emissions by half.

The route will operate on Wednesdays from Quebec City and Thursdays from LondonGatwick.

Enhanced service from Quebec City for summer 2022

Air Transat is continuing to expand its international service out of Quebec City by offering direct flights to six other destinations for the summer of 2022.

In addition to serving London, Air Transat also plans to restart its service between Quebec City and Paris, enabling travelers to enjoy exclusive service to two of Europe’s major metropolises. Sun-lovers are also sure to find something to their liking thanks to direct flights to Fort Lauderdale, now offered year-round, as well as connections to Cancún in Mexico and Punta Cana in the Dominican Republic.

Top Copyright Photo: Air Transat Airbus A321-271NX WL C-GOIE (msn 8755) BSL (Paul Bannwarth). Image: 946809.

Air Transat aircraft slide show:

Air Transat aircraft photo gallery:

Transat A.T. Inc. reports its results for third quarter of 2021

Air Transat Airbus A321-271NX WL C-GOIF (msn 8876) LGW (Richard Vandervord). Image: 954944.

Transat A.T. Inc., one of the largest integrated tourism companies in the world and Canada’s holiday travel leader, announces its results for the third quarter ended July 31, 2021.

“We’re very pleased we were able to resume operations as scheduled on July 30 and move into the restart phase where our activities can gradually expand, and particularly as we look forward to a winter season that promises to be much busier than the last one. While we must continue to exercise caution given the evolving health situation, and although a full return to normal is still some time away, we’re very keen to get the crisis behind us,” stated Annick Guérard, President and Chief Executive Officer, Transat.

“Beyond resuming our operating activities, gradually recalling our employees and delivering training, we’ll be using this period to implement our strategic plan. We’ve announced two new destinations in the United States for the winter, we’re working on optimizing our capital structure, and we’re engaging in a number of discussions towards entering into airline partnership agreements. Our ambitions are high, but we’re on the right track,” Mrs. Guérard added.

The global air transportation and tourism industry has faced a collapse in traffic and demand. Travel restrictions, uncertainty about when borders will reopen fully, both in Canada and at certain destinations the Corporation flies to, the imposition of quarantine measures and vaccination and testing requirements both in Canada and other countries, as well as concerns related to the pandemic and its economic impacts are creating significant demand uncertainty, at least for fiscal 2021. For the first half of winter 2021, the Corporation rolled out a reduced winter program. On January 29, 2021, following the Canadian government’s request to not travel to Mexico and the Caribbean, and the introduction of new quarantine measures and COVID-19 testing requirements, the Corporation announced the complete suspension of all its regular flights and the repatriation of its clients to Canada.

Starting July 30, 2021, the Corporation partially resumed its operations and gradually rolled out a reduced summer program. The Corporation cannot predict all the impacts of COVID-19 on its operations and results, or precisely when the situation will improve. The Corporation has implemented a series of operational, commercial and financial measures, including new financing and cost reduction measures, aimed at preserving its cash. The Corporation is monitoring the situation daily to adjust these measures as it evolves. However, until the Corporation is able to resume operations at a sufficient level, the COVID-19 pandemic will have significant negative impacts on its revenues, cash flows from operations and operating results. While progress on vaccination and the lifting of certain restrictions have made it possible to resume operations at a certain level during 2021, the Corporation does not expect such level to reach the pre-pandemic level before 2023.

Preserving cash is a priority for the Corporation; with respect to the COVID-19 pandemic, the Corporation has taken the actions discussed in the Overview section of the MD&A included in our 2020 Annual Report. Other opportunities are being evaluated to achieve this objective and the following additional actions in response to the COVID-19 pandemic were taken during the nine-month period ended July 31, 2021:

  • The Corporation completed its efforts to obtain long-term financing. As described in the Financing section of the MD&A, the available financing therefore represents a maximum of $820.0 million, of which $585.1 million was drawn as at July 31, 2021. Of the drawn down amount, a total of $265.1 million was used to repay travelers who were scheduled to leave after February 1, 2020, for which a travel credit had been issued due to COVID-19 and who had requested to be reimbursed.
  • During the quarter ended January 31, 2021, two Airbus A330s and one Boeing 737-800 were returned to lessors early. These are in addition to the three Boeing 737-800s and one Airbus A330 that were returned in advance to their lessors during the fiscal year ended October 31, 2020.
  • The Corporation continuously adjusts its flight program as the situation evolves. Since the resumption of its airline operations on July 30, 2021, Transat offers once again a reduced program of international flights departing from Montréal and Toronto that it intends to enhance gradually.
  • The Corporation is negotiating with its suppliers, including aircraft lessors to benefit from cost reductions and changes in payment terms, and is continuing to implement measures to reduce expenses and investments.
  • The Corporation is continuing to make use of the Canada Emergency Wage Subsidy [“CEWS”] for its Canadian workforce, which enables it to finance part of the salaries of its staff still at work and, until August 28, 2021, to offer employees on temporary layoff to receive a portion of their salary equivalent to the amount of the grant received, with no work required.
  • As at July 31, 2021, cash and cash equivalents totaled $429.4 million.

Third-quarter highlights

Since mid-March of 2020, restrictions on international travel and government-imposed quarantine measures have made travel sales very difficult. Due to the global COVID-19 pandemic, the Corporation suspended its airline operations on January 29, 2021 for the second time since March 2020, until their partial resumption on July 30, 2021. These factors caused the fall in revenues. The Corporation recognized revenues of $12.5 million during the quarter, an increase of $3.0 million or 31.4% compared with 2020. In 2021, revenues were mainly driven by the activities of the Corporation’s incoming tour operator in sun destinations.

Operations generated an operating loss of $98.4 million compared with $132.0 million in 2020, an improvement of $33.6 million. Transat reported an adjusted operating loss1 of $50.9 million compared with $79.9 million in 2020, an improvement of $29.0 million. The decreases in operating loss and adjusted operating loss1 were due to the unfavorable settlement of fuel derivative contracts in the third quarter of 2020.

Net loss attributable to shareholders amounted to $138.1 million or $3.66 per share (diluted) compared with $45.1 million or $1.20 per share (diluted) for the corresponding quarter of last year. In 2020, the net loss attributable to shareholders was mitigated by a gain in the fair value of fuel-related derivatives and other derivatives of $67.7 million, related to the significant recovery of fuel prices during the quarter. The deterioration of the net loss attributable to shareholders was also accentuated by the $15.9 million foreign exchange loss recorded in the third quarter of 2021, mainly due to the unfavorable exchange effect on lease liabilities related to aircraft, following the weakening of the dollar against the U.S. dollar. During the third quarter of 2020, the Corporation recognized a $28.5 million foreign exchange gain, resulting mainly from the favorable exchange effect on lease liabilities related to aircraft. Excluding non-operating items, Transat reported an adjusted net loss1 of $115.6 million or $3.06 per share for the third quarter of 2021, compared with $139.8 million or $3.70 per share in 2020.

Nine-month period highlights

As a result of the above-mentioned factors, the Corporation recorded a decrease in its results for the nine-month period ended July 31. Moreover, for the first half of winter 2021, demand was very weak and the Corporation’s capacity represented a fraction of the 2020 level. For the nine-month period as a whole, the Corporation recognized revenues of $62.0 million, a decrease of $1.2 billion or 95.1% compared with 2020, and operations generated an operating loss of $282.9 million, compared with $186.6 million in 2020, a deterioration of $96.3 million. Transat reported an adjusted operating loss1 of $155.5 million compared with $31.4 million in 2020, a deterioration of $124.1 million.

Net loss attributable to shareholders amounted to $268.2 million or $7.11 per share (diluted) compared with $258.5 million or $6.85 per share (diluted) for the corresponding nine-month period of last year. Excluding non-operating items, Transat reported an adjusted net loss1 of $328.0 million or $8.69 per share for the nine-month period ended July 31, 2021, compared with $198.9 million or $5.27 per share in 2020.

Financial position

As at July 31, 2021, cash and cash equivalents amounted to $429.4 million, compared with $576.4 million on the same date in 2020. This decrease was mainly attributable to a significant decrease in business and to refunds of travel credits, partially offset by drawdowns on the credit facilities.

In total, the available financing represents a maximum of $820.0 million, of which $585.1 million was drawn down as at July 31, 2021. Of the drawn down amount, a total of $265.1 million was used to repay travelers who were scheduled to leave after February 1, 2020, for which a travel credit had been issued due to COVID-19 and who had requested to be reimbursed.

Deposits from customers for future travel amounted to $262.8 million, compared with $638.1 million as at July 31, 2020, a decrease of $375.3 million. This change was due to refunds of travel credits made during the third quarter of 2021.

The working capital ratio was 1.27, compared with 0.93 as at July 31, 2020. The improvement in working capital resulted from the travel credits refunded during the period and financed partly by the drawdowns on the unsecured credit facility to refund travelers and drawdowns on credit facilities.

Customer deposits as at July 31, 2021 included these travel credits issued for cancelled trips related to COVID-19 amounting to $159.3 million, compared with $504.6 million as at April 30, 2021. On April 29, 2021, the Corporation entered into an agreement with the Government of Canada that also allows it to borrow an amount of $310.0 million to issue refunds to certain travellers. Following this agreement, at the end of August 2021, the Corporation had received requests for about 80% of the amount of credits issued and made refunds for more than 90% of amounts claimed. Customers had until August 26, 2021 to submit their refund requests.

Off-balance-sheet agreements, excluding contracts with service providers, stood at $544.5 million as at July 31, 2021. This amount mainly consists in commitments to take delivery of the seven A321neoLRs undelivered as at that date.

Outlook

The current situation shows encouraging signs such as the level of bookings observed and the increase in the vaccination rate. However, it remains impossible for the moment to predict the impact of the COVID-19 pandemic on future bookings, the partial resumption of flight operations and financial results.

The Corporation has implemented a series of operational, commercial and financial measures, including cost reduction, aimed at preserving its cash. The Corporation continues to monitor the situation daily to adjust these measures as it evolves. Please see the Risks and Uncertainties section of the Corporation’s MD&A for the year ended October 31, 2020 for a more detailed discussion of the main risks and uncertainties facing the Corporation.

Consequently, for now the Corporation is not providing an outlook for summer 2021 or winter 2022.

Top Copyright Photo: Air Transat Airbus A321-271NX WL C-GOIF (msn 8876) LGW (Richard Vandervord). Image: 954944.

Air Transat aircraft slide show:

Air Transat inaugurates seasonal Vancouver – Quebec City service

Air Transat celebrated the launch of its brand-new direct service between Vancouver and Quebec City, becoming the first and only airline to operate this route.

Flights will be offered once a week, on Mondays from Vancouver and on Sundays from Quebec City, until October 25.

From left to right: Charles Thivierge – Captain; Linda Lancup – Flight Attendant; Marie-Josée Paiement – Flight Attendant; Mario Blais – Captain; Sonia Renaud – Flight Director; Ghislain Charette – Flight Attendant (CNW Group/Transat A.T. Inc.)

On the morning of August 2, to mark the inauguration of this new route, the 163 passengers of the very first TS969 flight from Vancouver were welcomed in a festive manner at the Vancouver International Airport (YVR). This comes a day after 185 passengers boarded the inaugural TS968 flight from Quebec City’s Jean Lesage International Airport (YQB).

The route will be operated by next-generation Airbus A321neoLR aircraft, which feature spacious cabins and state-of-the-art in-seat entertainment systems and have the lowest fuel consumption and greenhouse gas (CO2 and NOx) emissions in their class.

This summer, from Vancouver, Air Transat will also offer direct flights to Montreal and Toronto.

Air Transat resumes flights today

Air Transat is pleased to operate its first commercial flights today after six months of inactivity due to COVID-19 travel restrictions. Three flights are scheduled today: MontrealPunta CanaPunta CanaMontreal and MontrealVancouver. These flights kick off the airline’s summer program, which will include, at the height of the season, 24 routes to 16 destinations in Canadathe United States, the South and Europe.

Air Transat crew at Montreal airport today (CNW Group/Transat A.T. Inc.)

To meet the sustained demand from travelers wishing to uncover more of their Canada this summer, Air Transat offers an extensive program of domestic flights between CalgaryMontrealQuebec CityToronto and Vancouver. This includes exclusive direct flights between Quebec City and Vancouver, a first for the airline.

This domestic program also allows Canadians to travel to more international destinations via connecting flights from MontrealToronto and Quebec City.

In addition, from Montreal, Air Transat will gradually operate direct flights to Cuba (Holguin and Varadero), the Dominican Republic (Punta Cana), France (Paris)Haiti (Port-au-Prince), Mexico (Cancun), Portugal (Lisbon) and the United States (Fort Lauderdale and Orlando).

Travelers from Toronto will be able to fly direct to Cuba (Holguin and Varadero), the Dominican Republic (Punta Cana), England (London), Mexico (Cancun), Portugal (Porto) and the United States (Fort Lauderdale/Hollywood and Orlando).

And from Quebec City, direct flights will be offered to the United States (Fort Lauderdale/Hollywood).

Three more Airbus A321neoLR aircraft added to the fleet

Air Transat continues to transform its fleet with the delivery of three new Airbus A321neoLR, bringing the total number of these aircraft in its fleet to 10. Seven more are expected to be delivered progressively by 2023. It is worth reminding that these new generation aircraft have the lowest environmental impact in their class, reinforcing the company’s commitment to achieve carbon neutrality by 2050.The addition of these aircraft enhances the airline’s world-class fleet, one of the most modern in the industry.

Air Transat to operate to nearly 50 destinations this winter, adds Miami and Fort Myers

Air Transat Airbus A321-211 WL C-FTXU (msn 6114) YVR (Rob Rindt). Image: 949238.

Air Transat has announced its winter 2021-22 flight program.

Starting November 1, the airline will offer flights to nearly 50 destinations throughout the CaribbeanMexico, Central and South Americathe United States and Europe.

This program also features two new destinations in Florida—Miami and Fort Myers, with direct flights from Montreal—in addition to flights already scheduled for Fort Lauderdale and Orlando.

Starting in December 2021, Air Transat will fly to Miami four times a week, and to Fort Myers twice a week.

Flights to three continents this winter

To quench Canadians’ wanderlust, direct flights will be offered from eight Canadian cities: MontrealQuebec CityTorontoOttawaHamiltonLondonHalifax and Moncton.

From Montreal, Air Transat will operate direct flights to ColombiaCosta RicaCuba, the Dominican Republic, Guadeloupe, Haiti, Honduras, Jamaica, Mexico, Martinique, Panama, Puerto RicoSt. MaartenEl Salvador and the United States.

Travelers from Toronto will be able to fly direct to ColombiaCosta RicaCuba, the Dominican RepublicHondurasJamaicaMexicoPanamaSt. Maarten and the United States.

From Quebec City, seven sunny destinations will be accessible by direct flight to Cubathe United StatesMexico and the Dominican Republic.

And lastly, to allow Canadians to travel across their country and to increase connecting opportunities to international destinations, Air Transat will also operate domestic flights between MontrealQuebec CityToronto and Vancouver.

As for Europe, Air Transat will gradually offer direct flights from Montreal to FrancePortugalSpain and Italy. There will also be direct flights from Toronto to the United KingdomPortugalthe NetherlandsIreland and Italy, and from Quebec City to France.

Top Copyright Photo: Air Transat Airbus A321-211 WL C-FTXU (msn 6114) YVR (Rob Rindt). Image: 949238.

Air Transat aircraft slide show: