Transat attributes Q1 results to weak Canadian dollar

Transat has announced its results for the first quarter of 2017, with the company posting revenues of $689.3 million compared with $725.7 million in 2016 – a decrease of $36.4 million, or 5 per cent. Before non-operating items, it reported an adjusted net loss of $36.0 million for the first quarter of 2017, compared with one of $30.4 million in 2016.

Jean-Marc Eustache, president and chief executive officer of Transat, said that while the company’s cost-reduction and margin-improvement initiatives had resulted in an improvement compared to 2014, its performance was being harmed by a weak Canadian dollar. “At the moment… the effects of our initiatives are masked by the decline in value of the Canadian dollar,” he said. “Over the three years of our plan, if trends continue as before, fuel costs and especially exchange-rate fluctuations will have driven up costs for Sun destinations packages alone by more than $100 million, or $140.

“Naturally, we can’t pass that expense on to the consumer,” he continued. “Considering, however, that the results from the second quarter last winter were affected by multiple adverse events, it’s likely that our second-quarter results this year will show a slight improvement over 2016.”

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