Transat AT buffeted by low loonie, Zika virus

Tour operator Transat AT expects to struggle over the rest of the winter amid an ongoing hit from the low Canadian dollar, the impact of the Zika virus and a recently resolved labour dispute.

The firm estimates that over the last three winters, including this one, it has had to absorb about $150 million in net additional costs even after accounting for savings from lower fuel prices.

“That puts a lot of pressure on our winter profitability, that’s for sure,” chief financial officer Denis Petrin told reporters after Transat’s annual meeting.

On top of the increased costs, Transat says it has also been faced with a drop in demand from rising concern over the health threat posed by the Zika virus.

Meanwhile, the threat of a strike by pilots that was only resolved last month has already had an effect on second-quarter earnings.