Tour operator Transat A.T. Inc. missed expectations despite reporting lower losses in its seasonally slow first quarter on a 5.2 per cent increase in revenues.
The Montreal-based company, which operates Air Transat, says its net loss attributable to shareholders was $6.6-million or 18 cents per share, compared with a $32.1-million loss equal to 87 cents in the prior year.
Excluding one-time items including the $48.2-million sale of its Jonview Canada Inc. subsidiary, the adjusted loss for the period ended Jan. 31 was $33.9-million or 91 cents per share.
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That compared with a loss of $36-million or 98 cents per share in the first quarter of 2017.
Revenues rose to $725.8-million from $689.3-million on a 6.2 per cent increase in the number of travellers to sun destinations and 20.3 per cent to Europe. Average selling prices rose slightly across all markets.
Transat was expected to post a 78 cents per share adjusted loss in the quarter on $739.7-million in revenues, according to analysts polled by Thomson Reuters.
The company says its capacity to its main winter sun destinations market in the second quarter is up 5.5 per cent from last year. Transatlantic capacity has grown 19 per cent.
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Hurricanes in the Caribbean last September significantly impacted its results. Cuba, which accounts for one quarter of its sun destination capacity in the busy second quarter, was negatively impacted by the weather disturbances, Transat said in a news release Thursday.
Overall, Transat says it expects second-quarter results will be similar to last year when it lost $8.4-million on $884.3-million.
On the Toronto Stock Exchange, Transat's shares were down 10.7 per cent at $8.85 in morning trading.