Transat A.T.: A Precarious Recovery
Transat A.T. has published its results for the fiscal year ended October 31. The revenues for 2021 have barely reached $124 million. This amount represents only 5% of 2019 revenues, which were $2.9 billion. It is therefore no surprise that the company reports a net loss of $389 million for the 12-month period. In 2021, health restrictions therefore continued to weigh on Transat A.T.’s financial results. The negative cash flow amounted to $518 million, and its total debt rise from $900 million to $1.4 Billion. Its cash equivalents are now $433 million, and it has additional credit options for $130 million.
Resumption of Activities
Before the pandemic, Transat employed 5,100 people in Canada. As of October 31, this number had been reduced to 4,300, of which 2,200 were still inactive. During 2022, the company plans to recall 1,500 of its inactive people. She therefore anticipates having to make some permanent layoffs during the year in order to adjust to the new reality. But given the labour shortage, it may need to act with caution.
For winter 2022, Air Transat’s average capacity will be 60% of the volume before the pandemic. Note that this is the average capacity and right now it is well below the 60% marks. The number of seats available will therefore gradually increase to almost 75% by the end of winter. The company intends to continue expanding its routes to the southern United States during this period.
Transat A.T. said it was encouraged by the current level of reservations without giving a figure. But it goes without saying that the resurgence of the pandemic and health restrictions would completely change its predictions.
During 2021, Air Transat took delivery of four A321LRs and now operates ten. It is expected to receive seven more by the end of 2023. It also has thirteen A330s and seven A321ceos for a total of 30 aircraft. The company still has an A330 and a B737-800 which will not be operated until returned to the lessors. Click here to suscribe for free at our Youtube channel.
The recovery is well underway for the Transat A.T. group in 2022. However, its debt is high and the financial room for maneuver has shrunk considerably over the past two years. But 2022 will be a decisive year for this company; if the pandemic returned, it could not take another loss of more than $500 million.>>> Follow us on Facebook and Twitter