Transat AT Inc. says it has sold a piece of land in Mexico to resort company Finest Resorts for US$38 million. The company says the sale is part of its plan to focus on its airline business as it tries to return to profitability after more than two years of losses.

Transat noted it announced in 2018 that it bought the land as part of the development of a hotel subsidiary which it discontinued in 2021.

It says proceeds of the sale of the property in Puerto Morelos will be used to repay debt, which totalled $1.92 billion at the end of its second quarter on April 30.

Finest Resorts owns and operates Finest Playa Mujeres in Cancun, Mexico, and Finest Punta Cana, in the Dominican Republic.

The sale is expected to close in Transat’s fourth quarter.