Revenues were down
slightly for the 4th quarter, but Transat A.T. recorded adjusted
operating incomeof$86.7 million, compared with$76.0 million
in the same period last year. Net income was even better at$69.1 million,
compared with$30.6 million in 2014.
"Our offering is
increasingly distinctive and attractive to travellers. Hence, the very good
results we recorded on the transatlantic market, which represents the lion's
share of our business in summer," said President
& CEO Jean-Marc Eustache. "We
also posted a profit on sun destinations in the summer. These are among the
best 2nd half results we have ever recorded, and this at a time when
global capacity was up 7% on the transatlantic market. We did better only once,
in 2013. All in all, this was an excellent summer,” Eustache said.
For fiscal 2015, the
Corporation posted revenues of$3.6 billion, compared with$3.8 billion
in 2014, and an adjusted operating incomeof$100.8 million,
compared with$99.9 million in 2014.
Transat says the
decrease in revenues is mainly attributable to the winter season. Compared with
2014, weaker results in the winter were offset by better summer results.
For the winter season,
Transat posted revenues of$1.8 billion, vs. $2.0 billion
in 2014, and an adjusted operating lossof$32.4
million, compared with$23.9 million
in 2014. Capacity on sun destinations was down 6.3%, which largely contributed
to a 7.4% decrease in the global number of travellers.
For the summer,
Transat posted revenues of$1.8 billion, as in 2014, and an adjusted
operating incomeof$133.2 million,
compared with$123.8 million in 2014.
On the transatlantic
market, Transat says it successfully managed a decrease in selling prices, in
light of sharply declining fuel costs and intense competition, thanks to an
offering well aligned with traveller's expectations, which contributed to
improved results compared to 2014.
As atOctober 31,
2015, the Corporation's free cash totalled$336.4 million,
compared with$308.9 million at the same date in 2014. Deposits
from customers for future travel amounted to$489.6 million, compared with$424.5 million
Globally, Transat says
its bookings for the 1st half are ahead by 15% over 2014 at the same
On the Sun
destinations market outbound fromCanada, Transat's capacity
is approximately 7% higher than that offered last year and 45% of that capacity
has been sold. Bookings are ahead by 12% and load factors up 2.1%.
The impact of the
weaker CAD, net from lower fuel costs, will be a 4.0% increase in operating
costs if the dollar and fuel costs remain at their current level. The company
says margins are similar to last year at the same date.
On the transatlantic
market, where it is low season, Transat's capacity is up 19% compared to that
offered last winter. To date, 46% of that capacity has been sold, and bookings
are ahead by 15%. Load factors are down 1.2% and selling prices are 6.0% lower.
As described in its
plan announced in the 1st quarter of 2015, Transat continues to
implement initiatives to reduce operating costs and improve unit margins, with
an objective of at least$100 millionover
3 years. In 2015, thanks mainly to the internalization of narrow-body aircraft
and the implementation of a flexible fleet, Transat says it reached its
objective of$45 million. The targets for 2016 and 2017 are at