Transat A.T. Inc. reported its second-quarter loss grew compared with a year ago as it worked to capitalize on a recovery, but Transat CEO Annick Guérard says sales are progressing in a “very satisfactory manner” for the summer.

In fact, the Montreal-based company would have posted a positive result but for the sharp rise in fuel costs, says Guérard.

Transat adds the recovery that was temporarily slowed down by the Omicron variant earlier this year is now firmly entrenched.

“When the effect of Omicron subsided at the end of February, operations and sales rebounded strongly, allowing us to end the quarter on a very encouraging note and generate revenues of $358 million for the period. We foresee a strong recovery and will continue to implement all the measures necessary to capitalize on it,” said Guérard.

The company says its net loss attributable to shareholders amounted to $98.3 million or $2.60 per diluted share for the quarter ended April 30. The result compared with a loss of $69.6 million or $1.84 per diluted share a year earlier.

Revenue totalled $358.2 million compared with $7.6 million in the same quarter last year when Air Transat suspended operations after Ottawa requested a suspension of travel to Mexico and the Caribbean as well as the adoption of new quarantine measures and testing requirements.

“We observe that consumers are ready to accept price hikes and we have implemented a fuel hedging program to protect us against significant increases during the summer,” Guérard noted.

She concluded, “For the longer term, we continue to implement our strategic plan. While continuing to receive new fuel-efficient aircraft to the fleet, we continue to develop our network by adding new destinations and connections, with or without code sharing. We also benefit from our employees’ strong support, including our pilots with whom we have entered into a three-year agreement, ensuring stability for the coming period.”