Travel company Transat A.T. (TRZ) reported a sizable loss for its fiscal fourth quarter as higher fuel prices offset an increase in demand for air travel during the period.
The Montreal-based parent company of carrier Air Transat reported a fiscal fourth quarter net loss of $126.2 million or $3.32 per share, up 4% from a loss of $121.3 million or $3.21 per share in the same quarter of 2021.
Revenue totalled $573.1 million for the three months ended October 31, up from revenue of just $62.8 million in the same quarter of 2021.
The airline and tour operator said that the ticket prices it charges are now 15% higher than in 2019 before the COVID-19 pandemic hit.
However, the company said that higher fuel prices, which have risen 61% in 2022, and a weak Canadian dollar offset the gains from higher pricing.
Further costs were incurred when the airline had to rehire employees who were laid off during the pandemic, amounting to 1,800 new and returning employees.
Looking ahead to 2023, Transat A.T. said that it expects capacity of about 90% of its pre-pandemic 2019 levels.
The company said the number of seats filled by passengers on its aircraft is currently at 56%, an amount comparable with 2019 levels.
Transat A.T.’s stock is down 25% this year and trading at $3.22 per share.
