Transat has announced the results for the third quarter ended July 31, 2018, which highlight revenues of $696.6 million ($733.2 million in 2017), and an operating loss of $8.0 million (operating income of $41.0 million).
Contrary to a report by the Canadian Press, Transat confirmed with PAX that despite Q3 losses, the airline has no intention of raising its prices, and did not confirm a timeline of pricing adjustments, in order to offset raising fuel costs.
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Prices will remain consistent with the market
In an exclusive interview with PAX, Christophe Hennebelle, vice president human resources and corporate affairs, Transat, said:
"There was quite some misunderstanding regarding the release authored by the Canadian Press; we absolutely did not say that we made a decision to raise our prices next year. What we said is that the increase in fuel prices takes time to be integrated into the market, and that of course, our prices are consistent with the market. Therefore, we did not [make a decision] to raise our prices when fuel prices went up this year, but we expect that if the fuel prices stay up, then both our prices and our competitors prices will be higher as well."
"The bulk of the message is that our prices are always consistent with the market, and we always try to offer interesting prices that are below the competition, but in relation to the market."
Transat posted revenues of $696.6 million, compared with $733.2 million in 2017, a decrease of $36.6 million or 5.0 per cent. The 2017 revenues included $77.0 million from the Jonview subsidiary, which was sold last November.
The number of travellers was up 11.5 per cent in the transatlantic market, which was the company's main market for the period, while capacity increased by 13.9 per cent. The number of travellers was up 7.9% in the sun destinations market while capacity rose 7.0%. Average selling prices were similar to those of 2017 across all of our markets.
Transat also recognized revenues of $2.3 billion, up 0.8 per cent from 2017. During the winter season, the number of travellers increased by 5.4 per cent in the sun destinations market, which was the main market during that period.