Air Transat (TRZ) is calling for more aid from the federal government in Ottawa after the struggling Canadian airline posted a $114.3 million quarterly loss.
The Montreal-based travel and tour operator blamed its latest loss on a surge in cancellations caused by the Omicron variant of COVID-19.
“In November, our net bookings were about 70 per cent of 2019 levels. However, from mid-December to mid-January, cancellations exceeded bookings and net bookings became negative,” the company said in a news release.
The surge in cancellations saw the company burn through $27 million of cash per month, above the normal range of between $15 million and $20 million. In the three-month period ending January 31, the company reported a net loss attributable to shareholders of $114.3 million, or $3.03 per share, compared to a loss a year ago of $60 million, or $1.60 per share.
Air Transat says it has restarted discussions with the federal government for additional funding. The company also negotiated amendments to the existing loan agreement it has through Ottawa’s “Large Employer Emergency Financing Facility,” including a deferral of interest rate hikes that were scheduled for this April.
Air Transat has also received an additional $43.3 million in financing from the government to refund travellers.
While Transat did not provide an outlook for the second quarter or the summer season, the company is ramping up its schedule. Its planned capacity for the summer, which was announced earlier this week, represents 91% of the capacity it had in 2019.
Air Transat’s stock fell about 5% following its latest financial results and closed trading in Toronto yesterday (March 10) at $4.65 a share.