Overview
- Transat reported a $79-million loss for the second quarter, a steeper shortfall versus a $23-million loss a year earlier, while revenue remained roughly flat at about $1 billion.
- The Montreal-based carrier said it will apply for up to $150 million from a newly announced federal emergency loan fund to bolster liquidity.
- Transat and its CEO Annick Guérard blamed sharply higher jet-fuel costs and the suspension of flights to Cuba because of a local fuel shortage as major drivers of the result.
- The airline has cut less profitable routes, added fees and tried to raise fares, but volatile airfare markets have limited its ability to pass higher fuel costs onto customers.
- Industry groups warn the pain will last: IATA has cut profit forecasts and estimated roughly $100 billion in extra fuel costs for carriers, with limited sustainable aviation fuel supplies and delivery backlogs likely to keep pressure on margins.