{"id":13706,"date":"2011-12-15T19:06:39","date_gmt":"2011-12-15T19:06:39","guid":{"rendered":"http:\/\/199.68.181.250\/?p=13706"},"modified":"2013-11-06T07:10:33","modified_gmt":"2013-11-06T07:10:33","slug":"transat-takes-action-as-margins-suffer","status":"publish","type":"post","link":"https:\/\/www.travelpress.com\/transat-takes-action-as-margins-suffer\/","title":{"rendered":"Transat takes action as margins suffer"},"content":{"rendered":"<p><img decoding=\"async\" src=\"https:\/\/www.travelpress.com\/IMG\/daily_news\/TransatDec15.jpg\" >Transat A.T has reported that for its fiscal year ending Oct. 31, 2011, it posted revenues of $3.7 billion, compared with $3.5 billion in 2010. Its margin before restructuring charge of $36.5 million, compared with $127.6 million in 2010, and a net loss of $12.2 million ($0.32 per share on a diluted basis), compared with net income of $65.6 million ($1.73 per share on a diluted basis) in 2010. Before non-operating items, Transat reported an adjusted after-tax loss3 of $7.2&#225;million in 2011 ($0.19 per share on a diluted basis), compared with a net income of $53.7 million ($1.41 per share on a diluted basis) in 2010. In commenting on the results, Transat&#8217;s president and CEO, Jean-Marc Eustache said: &#8220;We have started implementing an action plan aimed at returning to profitability and resume growth.&#8221; That plan includes the reduction of overhead costs in Canada and France for a recurring cost-savings of approximately $11 million per year; optimization of IT systems, boosting the company&#8217;s ability to dynamically manage prices and inventories, and reduce costs; reduction of input costs, especially in Canada, to stem from changes in Air Transat fleet, higher aircraft utilization, outsourcing of wide-body aircraft to third parties in winter and implementation of an exclusive hotel program; enhanced customer experience, with a renewed sun product and the refurbishment of Transat&#8217;s A330 fleet cabins; increase volume, including the expansion of its travel agency network and targeted acquisitions in Canada and abroad, in line with its 2012-2014 strategic plan. Transat said that the reduction of overhead costs should reach $17 million per year (including $11 million in salaries). Optimization of IT systems should generate efficiency gains, and bring approximately $4 million in cost savings, for an aggregated favourable impact of $20 million per year, starting in 2013. It expects that these measures (cost reductions, additional revenues, efficiency gains) should contribute $20 to $25 million to the margin in 2012, $35 to $40 million in 2013, and $50 million in 2014. Transat also reported its fourth quarter numbers which include revenues of $809.9 million for the quarter ended Oct. 31, 2011, compared with $778.6 million in 2010, an increase of $31.3 million, or 4.0%. It recorded a margin, before restructuring charge of $27.4 million, compared with $77.9 million in 2010 and a net loss of $4.5 million ($0.12 per share on a diluted basis), compared with net income of $52.4 million ($1.37 per share on a diluted basis) in 2010. Before non-operating items, the company reported an adjusted after-tax income3 of $10.1 million in 2011 ($0.27 per share on a diluted basis), compared with $47.7 million ($1.25 per share on a diluted basis) in 2010. Go to <a href=\"http:\/\/www.transat.com\">http:\/\/www.transat.com<\/a> for more.<\/p>\n","protected":false},"excerpt":{"rendered":"Transat A.T has reported that for its fiscal year ending Oct. 31, 2011, it posted revenues of $3.7 billion, compared with $3.5 billion in 2010. Its margin before restructuring charge of $36.5 million, compared with $127.6 million in 2010, and a net loss of $12.2 million ($0.32 per share on a diluted basis), compared with<span class=\"ellipsis\">&hellip;<\/span><a href=\"https:\/\/www.travelpress.com\/transat-takes-action-as-margins-suffer\/\">more &#8250;<\/a>","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"kia_subtitle":"","footnotes":""},"categories":[9,1,10,11],"tags":[],"front_page":[],"class_list":["post-13706","post","type-post","status-publish","format-standard","hentry","category-airlines","category-news","category-tour-operators","category-travel-agents"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.travelpress.com\/wp-json\/wp\/v2\/posts\/13706","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.travelpress.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.travelpress.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.travelpress.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.travelpress.com\/wp-json\/wp\/v2\/comments?post=13706"}],"version-history":[{"count":0,"href":"https:\/\/www.travelpress.com\/wp-json\/wp\/v2\/posts\/13706\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.travelpress.com\/wp-json\/wp\/v2\/media?parent=13706"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.travelpress.com\/wp-json\/wp\/v2\/categories?post=13706"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.travelpress.com\/wp-json\/wp\/v2\/tags?post=13706"},{"taxonomy":"front_page","embeddable":true,"href":"https:\/\/www.travelpress.com\/wp-json\/wp\/v2\/front_page?post=13706"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}