Air Transat Hiking Prices
CBJ — Transat AT Inc. will be raising airfare prices next summer after an increase in jet fuel costs resulted in the compay’s least profitable third quarter in more than 10 years.
Fuel surged to US$2.15 per gallon in May, according to the U.S. Energy Information Administration. In Canada, a 25% increase in the price of gasoline drove an even steeper rise in average airfares over the past year.
The number of travellers in the transatlantic market increased nearly 12% in the third quarter — which spans the high summer season — alongside 14% capacity growth, but not enough to offset losses from fuel costs.
Revenues totalled $696.6 million, down five per cent from $733.2 million in the same quarter in 2017 when its results included $77.0 million from its Jonview subsidiary, which was sold last November.