Although its revenue is improving, Transat AT is not yet out of the woods. Omicron and new border restrictions thwarted its relaunch, forcing the tour operator to seek new accommodations from Ottawa.
• Read also: Air Transat and Porter enter into a codeshare agreement
• Read also: Other tiles for Transat
“In the short term, our priority is to protect our cash and access the liquidity needed to weather this period of uncertainty,” Transat No. 1 Annick Guérard said Tuesday while presenting his latest financial results.
Although the effects of the pandemic continue to be felt, M.me Gerard acknowledged that the pace of bookings for upcoming trips is promising.
But because Transat is still “on a cash burn” — it drew an average of $27 million a month from its reserves last quarter compared to $15 million a month in the previous quarter — it admitted it had to enter discussions with the federal government to Obtaining supplementary financing.
Air Transat’s parent company reported an operating loss of $73.8 million for 1Verse Quarter ended January 31, 2022. At the same time last year, his loss was $98 million.
During this period, Transat borrowed an additional $43.3 million from the federal government to allow it to compensate its customers whose flights have been canceled due to the pandemic. This amount is on top of the $310 million already loaned to him.
The tour operator has also succeeded in postponing the planned increase in interest on the emergency loan contracted with Ottawa. In total, the available funding will reach a maximum of $743.3 million.
Discussions are continuing with Ottawa with a view to establishing other sources of funding. Transat’s address closed at $4.65 Thursday on the Toronto Stock Exchange, up 0.43%.
“Subtly charming problem solver. Extreme tv enthusiast. Web scholar. Evil beer expert. Music nerd. Food junkie.”