Transat outlines outlook for 2Q2016

Transat stated (09-Jun-2016) its capacity increased by 7% for the period between May-2016 and Oct-2016 on the transatlantic market, alongside a 15% increase in total industry capacity. The carrier's transatlantic market load factors has decreased by 3.3% year-over-year, while the selling prices of bookings taken are lower by 6.3%. The carrier stated lower fuel costs, offset in part by the weakened Canadian dollar, will result in a decrease in operating expenses of 4.6% if the dollar remains at its current level against the US dollar, the euro and the pound, and if fuel prices remain stable. On the sun destinations market outbound from Canada, Transat's capacity is lower by 1% year-over-year. To date, 45% of that capacity has been sold, load factors are higher by 1.0%, and selling prices are higher by 1.8%. If the weakened Canadian dollar remains at its current value against the US currency, and if fuel prices continue to trend lower, operating expenses will increase by 5.5%. With regard to the discontinued France-based operations, medium-haul bookings are ahead by 6%, while long-haul bookings are ahead by 10% compared with 2015 at this time. If the current trends hold, Transat expects its global results for 2H2016 to be inferior to those of 2015, which were the second-best in the company's history. [more - original PR - I] [more - original PR - II]