By Ketki Saxena
Investing.com -- Transat AT Inc (TSX:TRZ)posted its second-quarter earnings, recording a narrowing net loss and a jump in revenue year over year.
The net loss was recorded at $29.2 million compared with $98.3 million in Q2 of 2020 when disruptions caused by COVID-19 Omicron variant led many flights being cancelled or rescheduled.
Total revenue amounted up to $870.1 million which marks a substantial jump from last year’s figure ($358.7 million) within the same period.
Transat has also revised its financial outlook for the fiscal year in response to the growing demand for leisure travel.
The Montreal-based airline now anticipates an operating income margin of 5.5 per cent to seven per cent for 2023, a significant increase from the previous estimate of four per cent to six per cent. This adjustment is based on current booking trends observed by the company.
Transat CEO Annick Guérard attributes this positive shift to "steady" demand in leisure travel, resulting in higher prices and increased sales. In fact, she revealed that 60 per cent of summer capacity has already been sold out.
"The stage is set for a dynamic summer," Guérard said in a news release.
Transat remains optimistic about maintaining this "solid" performance throughout the year, as they believe the combination of robust demand and increasing prices will help them navigate a volatile and generally higher cost environment.
"The combination of strong demand and upward pricing will allow the Corporation to cope with a cost environment that remains generally higher and volatile," the company said in a news release.