Transat closed fiscal 2024 on a positive note with adjusted EBITDA of $123.3 million in the fourth quarter that the company says was driven by higher traffic, lower fuel costs, and financial compensation from Pratt & Whitney related to grounded aircraft over the past two years.
Annick Guérard, President and Chief Executive Officer of Transat, says 2025 is shaping up to be a better year.
“Our results point to a more disciplined competitive environment as reflected by slightly better yields on a sequential basis. Looking ahead to fiscal 2025, we expect the industry to continue to favour a measured approach while maintaining relatively stable capacity. The decline in inflation and interest rates also suggests an increase in consumers' discretionary spending,” Guérard said.
The Transat leader says the circumstances should provide a suitable backdrop to deliver further yield improvements next year, but she says the company will continue to exercise caution “in a period of high economic uncertainty.”
Annick Guerard, Transat (Photo Credit: Transat Media License)
"Our Elevation program, a comprehensive optimization plan aimed at maximizing long-term profitable growth, is progressing according to plan. At this stage, the initiatives implemented will contribute $25 million toward our goal of an annualized adjusted EBITDA improvement of $100 million. Initial significant impacts on our results are expected beginning in the second half of fiscal 2025," said Guérard.
For the quarter ended October 31, 2024, revenues reached $788.8 million, up 3.2% from $764.5 million in the corresponding period last year. Adjusted EBITDA1 stood at $123.3 million, compared with $89.0 million a year ago. This increase reflects revenue growth and a 22.2% decrease in fuel prices compared with the corresponding period of 2023, partially offset by higher operating expenses associated with capacity expansion.
For the full year ended October 31, 2024, Transat revenues reached $3,283.8 million, up 7.7% from $3,048.4 million for the previous fiscal year. Capacity offered across the entire network increased by 10.1% compared with 2023, while traffic was 7.6% higher.
As at October 31, 2024, cash and cash equivalents amounted to $260.3 million, compared to $435.6 million as at October 31, 2023.
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