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Flights of Air Transat will resume on July 23

by magictr
June 11, 2020
in Business
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Flights of Air Transat will resume on July 23
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Des vols d’Air Transat reprendront dès le 23 juillet

Photo: Paul Chiasson, The canadian Press
Ait Transat is to serve 23 international routes during the summer.

At the stop from the 1st April due to the pandemic of COVID-19, Transat A. T. will resume service as of 23 July, but the pandemic risk to” influence the outcome ” of the transaction, which should allow it to pass under the wing of Air Canada.

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The tour operator in quebec has made these announcements Thursday, unveiling its results for the second quarter ended April 30. The period ended with a net loss of 179,5 million or $ 4,76 $ per share, as well as revenues from 571.3 million, down 36 %.

If it remains “firmly committed” to the place of the transaction with Air Canada, the parent company of Air Transat has warned that “certain factors outside of its control and related to the pandemic” that could influence the proposed arrangement of 720 million.

“The market conditions of the industry worldwide have been transformed completely,” says the company, based in Montreal.

The shareholders of Transat A. T. accepted the offer of $ 18 per share to Air Canada, but the Toronto stock Exchange, the title of the tour operator has ended on Wednesday 6.11 $.

“There are fears that the transaction is not threatened, all the more that the aviation sector is severely affected and may take between three and five years to recover,” said the analyst Mona Nazir of Laurentian Bank securities, in a note sent to investors.

After the competition Bureau of Canada, the european Commission has also raised concerns in respect of the transaction, which, in his opinion, could lead to a price increase. She decided to study it more thoroughly in giving until 30 September to decide.

The decision of the Trudeau government is still awaited. Originally scheduled for the second quarter, the closing of the transaction, if it goes ahead, could occur towards the end of the year.

In regards to the gradual resumption of its flights, it will be whether the easing of travel restrictions allows. The company had initially suspended its service until 30 June. The interruption is extended by approximately three weeks.

Transat A. T. will provide 23 international routes during the summer, and a programme of domestic flights. Since Montreal and Toronto, 13 european destinations — France, the United Kingdom, Greece, Italy and Portugal — will be made available.

Flights are also scheduled to five sun destinations, namely Mexico, the dominican Republic, Cuba, Haiti, and Florida in the southern United States.

The tour operator attributed its net loss to a range of elements, such as losses in respect of hedging contracts for fuel.

Excluding non-recurring items, the adjusted loss of Transat A. T. amounted to $ 38.8 million, or $ 1.03 per share, compared to an adjusted loss of $ 6.4 million, or 17 cents per share in the second quarter of last year.

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