Quebecois carrier Transat reported C$667.5 million (US$ 484.2 million) revenue in 2022 for an adjusted income (EBIDTA) of C$3.3 million but an operating loss of C$38.1 million.
The carrier was left with unrestricted liquidity of C567.7 million on January 31 2023, following "strong cash flow generation" of $145.2 million, and customer deposits of C$898.3 million, which it said was "a new high" and meant it was "headed for a return to profitability".
"The momentum from the end of 2022 continues, confirming our financial scenarios," according to Annick Guérard, president and chief executive, who said Q1 2023 revenue "more than tripled compared with the corresponding quarter in 2022" while capacity was comparable to 2019.
"We recorded an adjusted operating income of C$3.3 million for the period, an improvement of C$39.7 million compared with the first quarter of 2022. These results are especially encouraging since the first quarter, which falls in the shoulder period, is usually the lowest of the year," the president added.
"Transat maintains the adjusted operating income margin target of 4% to 6% for the year. Resilient demand for travel is supporting prices and helps us deal with the pressure on operating costs. The context is therefore challenging but remains favourable to recovery in travel and Transat's relaunch," Guérard continued.
The carrier said by the end of January 2023, its cash and cash equivalents amounted to C$467.7 million, an increase of C$124.6 million compared with C$343.1 million in 2022.. Cash and cash equivalents "in trust or otherwise reserved resulting from travel package sales" increased to C$555.1 million compared with C$172.4 million a year before.
Transat's available financing amounted to a maximum of C$963.3 million, of which C$863.2 million was drawn down, up from C$678.0 million at the end of January 2022, for unrestricted liquidity of $C567.7 million.