Transat brightens its outlook as the company pushes new-found capacity discipline

Canadian tour operator Transat was back in the black for the fiscal quarter ending 31-Jul-2012 (3QFY2012) and remains bullish on its prospects for 4QFY2012 despite considerable challenges in its operations in Europe and the Caribbean. Tightening of capacity that began during 3QFY2012 is continuing throughout the remainder of this year and into early 2013 as the parent company of Air Transat seeks to achieve consistent profitability.

Company management believes capacity discipline, coupled with improved revenue management, should serve as a solid foundation for improving its financial performance even as macro economic conditions continue to remain shrouded in uncertainty. But while management stresses it is doing everything it can to ensure Transat's turnaround, it is stopping short of declaring a reversal of fortunes has begun in earnest.