Although it saw its revenues increase in the first quarter of 2022, Transat was upset by the Omicron variant in its takeover plans.
The airline recorded 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.
In addition, Air Transat’s revenues increased by $160.5 million to reach $202.43 million for the quarter ended January 31, 2022.
According to Air Transat, these figures are attributable to the appearance 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 objectives, the appearance of the Omicron variant marked a temporary halt in our sales between mid-December and the beginning of February. “said Annick Guérard, President and Chief Executive Officer of Transat, in a press release.
“As we will remain in a situation of cash consumption for the months to come, we are also in discussions with the federal government for additional funding,” added Ms. Guérard, who was nevertheless pleased to have been able to remind around 500 employees since November.
“After the easing of restrictive border measures, bookings have resumed their upward trend, both for winter and for summer, which bodes well for the coming months,” she said.
Ms. Guérard explains that in the short term, “the priority is to protect our cash and access the liquidity necessary to get through this period of uncertainty” while the impacts of COVID-19 are still being felt and that ” the geopolitical situation is constantly changing”.
Air Transat states that it is “impossible at this time to predict the effect of the COVID-19 pandemic on future reservations, as well as on financial results” and that because of this uncertainty it does not intend to present outlook for the second quarter nor for the summer of 2022.