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“This is our best first quarter ever, and we are very satisfied with the results. Demand for our products was up 20%, in a context of very intense competition. Obviously, our teams did a good job attracting travellers,” said Jean-Marc Eustache, president and CEO of Transat A.T. Inc. “That said, the outcome of the winter season depends on the second quarter, as we may experience narrower margins compared to last year.”
The overall increase in revenues resulted mainly from revenue growth of 21.4% in North America and 30.4% in Europe, and is primarily due to expanded business activity, particularly in North America, as well as to acquisitions made in fiscal 2006.
For the 2007 winter season, the corporation expects demand to be higher than in 2006. However, in light of heightened competition and supply, Transat anticipates narrower margins for the next quarter.
In Europe, bookings for the winter season are tracking ahead of their
2006 levels, and the corporation expects a positive margin in the next
quarter.