Tourism operator Transat A.T. Inc. says second-quarter profits grew to $8.6-million as the company booked stronger revenues but also grappled with higher fuel prices.
The Montreal-based company said net income was equal to 23 cents per share, compared to $6.2-million, or 16 cents per share for the three months ended April 30 a year earlier.
Revenue grew to $1.1-billion from $1.06-billion, an increase of $40.7-million that the company attributes to higher average selling prices for tour packages due to bigger fuel surcharges.
The company also said it booked an 8-per-cent increase in the number of Canadians headed to sun destinations.
Part of that increase was offset by a stronger Canadian dollar against the euro and pound, which made its foreign business units appear weaker when converted into the loonie.
"These quarterly results reflect many of the initiatives put in place to grow our revenues and maintain our leadership position on the market," said president and CEO Jean-Marc Eustache in a release.
"However, as anticipated, these efforts have been offset by the substantial and quick rise in fuel prices."
Transat A.T. said fuel costs have grown 30 per cent for the company, when factoring in the effect of its more fuel-efficient Airbus A330s as well as fuel hedging, but the company noted that prices are similar to last year even when factoring in extra fuel surcharges.
The company said about 60 per cent of capacity has been sold and load factors are in line with a year ago.