Canada’s Air Transat to hold capacity flat as it swings to a loss

Air Transat reported an adjusted net loss of C$949,000 for its fiscal third quarter due primarily to increased labour costs and rising fuel prices. The Canadian leisure carrier intends to maintain its current flight capacity levels moving forward. Higher labour expenses stemming from the new collective bargaining agreement contributed significantly to the financial downturn. Fuel price spikes also played a substantial role in negatively impacting the company’s profitability. Management anticipates these pressures will continue to affect the airline's bottom line throughout the remainder of the fiscal year.