MONTREAL - Transat AT Inc.'s third-quarter net loss more than doubled from the same time last year as the tour operator worked to complete its takeover by Air Canada.
The Montreal-based company lost $11.0 million in the quarter ended July 31 versus its $5.0-million net loss the year prior.
The push to close Transat's sale to Air Canada heaped on an extra $14 million in costs in its third quarter, including $6 million in professional fees.
The $720-million deal, approved last month by 94.7 per cent of shareholders, faces intense scrutiny from regulators eyeing the impact of an acquisition that will see the country's largest carrier control at least 60 per cent of transatlantic air travel from Canada.
Transport Canada has said it will conclude its assessment of the transaction by May 2, 2020.
Transat, which saw a Quebec court sign off on the agreement in August, expects the $18-per-share purchase to close by the second quarter of the 2020 calendar year if the required regulatory approvals are obtained and conditions are met.
"We're very satisfied with the strong support received from our shareholders and the final approval of the arrangement plan," chief executive Jean-Marc Eustache said in a statement. "The planned transaction is good news for our shareholders, our employees, our clients and our community, and we're currently working to obtain the required regulatory approvals to complete it."
Transatlantic passenger traffic — key in the late-spring and summer months when sun-destination trips drop off — rose more than four per cent year over year last quarter to help boost revenue to $698.9 million, up from $664.6 million a year earlier.
Net loss attributable to shareholders amounted to 29 cents per share, compared with a loss of 13 cents per share in the same quarter last year.
Companies in this story: (TSX:TRZ, TSX:AC)