MONTREAL - Travel company Transat A.T. Inc. says its third-quarter profits tumbled to $20.9 million over the same time last year when it benefited form a non-cash gain related to fuel hedging.
The Montreal-based tour and airline operator (TSX:TRZ.B) said profits were equivalent to 55 cents per share, compared to $31 million, or 91 cents a share, a year earlier.
In the year-ago period the company booked a $30.6 million gain from fuel hedging, which drove its profits higher. The impact was much larger than the $2.1 million recorded in the latest third quarter.
The owner of numerous integrated travel-related businesses including Air Transat said its selling prices, load factors and traveller counts were all higher on the transatlantic market.
In Canada, margins were lower for sun destination vacations, as selling prices remained low and cost reductions only played a partial role in offsetting the decline.
Revenues were $867.3 million, up 5.9 per cent from $819.4 million.
Transat said that market conditions remain challenging while competition is intense on the French medium-haul market, which it expects will impact its Look Voyages brand in France.
In its outlook, the company noted that its capacity on the transatlantic market is about approximately 15 per cent higher than in 2009, while its load factor is in-line with the period.
"We recorded an increase in the number of travellers, good load factors, as well as higher selling prices on the transatlantic market," said president and chief executive Jean-Marc Eustache in a release.
"International tourism remains resilient, people continue to show an inclination to travel."
