Transat expects to resume flights mid-June, says Air Canada deal uncertain

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Click to play video 'Air Canada to provide refunds in exchange for bailout, union says'

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Transat AT Inc. expects to resume its operations around mid-June, during the high summer season, the travel company said Thursday as it reported its latest financial results.

The timeline for a restart follows a suspension of the company’s regular flights following the Canadian government’s request in January to stop travel to Mexico and the Caribbean because of the pandemic.

Transat chief executive Jean-Marc Eustache said the Montreal-based company is also working to secure financing in case its deal to be acquired by Air Canada is cancelled.

Read more:
Air Canada, Transat deal up in the air as deadline passes

 

The future of the deal to be acquired by Air Canada is uncertain as the deadline for it to be completed passed last month.

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Both sides now have the right to terminate the agreement, which still requires approval from the European Union.

Transat says it will need at least $500 million in long-term financing if the Air Canada deal is not completed.






Air Canada to provide refunds in exchange for bailout, union says


Air Canada to provide refunds in exchange for bailout, union says

“With the arrival of vaccines, we’re now preparing ourselves for a resumption of operations in the summer and particularly next winter,” Eustache said in a statement.

“Our priority for the current quarter, while continuing to work on obtaining EU approval, is to secure financing, finalize our recovery plan and review all our options in the event the transaction with Air Canada will not take place.”

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Read more:
Ottawa gives green light to Air Canada’s $190M purchase of Transat

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Transat reported Thursday a loss attributable to shareholders of $60.5 million or $1.60 per diluted share for the quarter ended Jan. 31 with a loss of $33.8 million or 90 cents per diluted share a year earlier.

Revenue totalled $41.9 million, down from $692.8 million a year ago before the pandemic devastated the travel industry.

On an adjusted basis, Transat says it lost $2.89 per share for its most recent quarter compared with a loss of 54 cents per share a year earlier.




© 2021 The Canadian Press

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