Transat AT Inc Q1 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst : So, first of all, I wanted to ask you, perhaps more for Patrick, the liquidity announcements you made. So, what's the key driver for the CAD 43 million increase in refund facility, is it for the prior bookings which were done over the last couple of years or is it for the latest bookings that were being cancelled due to Omicron?

Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst : And that's good color. And I think just staying on the liquidity for now, you also mentioned, I think, in the disclosures that you are in ongoing discussions with the government for additional liquidity. Just trying to understand, the bookings are going probably very well at this point and maybe are rebounding perhaps toward 2019 levels. So there's this cash coming in the door. What's the drive for additional liquidity discussion? Is that more about the macro, given the Russia-Ukraine situation, the risk of new variants or is it the fuel or is it something else?

Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst : That makes sense. And last one for me, on the oil price, I think, Annick, you kind of mentioned that the A321neos will definitely provide an offset or a hedge against the oil price. And you mentioned about the fuel surcharge as well. I think, like industry as a whole, it's probably still not looking at fuel hedging at this point perhaps. But I wanted to ask you, any thoughts of what will actually trigger you guys or the industry to go for the hedging again? And is there anything you can share with us in terms of the sensitivity, because the oil price has gone up way higher here, I don't know if surcharges and demand elasticity and those things, they can provide a full offset. So, any thoughts there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 10, 2022 / 3:00PM, TRZ.TO - Q1 2022 Transat AT Inc Earnings Call

Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst : I got onto the call a little bit late, so apologies if this has been asked already. But just wondering if you could talk to a bit about, I guess, the point of sales trends, particularly what point of sales Europe looks like for Europeans coming to Canada for the summer specifically. And do you think that the fact that Canada still has this antigen test requirement is a significant impediment for visitors to Canada this summer?

Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst : I mean, do you think that there's still an impediment? I mean, clearly the bookings are looking pretty good for the summer, so probably isn't the case. But you still think there's maybe a bit of an impediment from the testing requirement in Canada and if that goes away, which hopefully it will in time for the summer, I mean, could we see a further step up in bookings?

Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst : That's good. That's what I would expect too. And just kind of a related question. I mean, for the summer, I mean, you're adding in some new routes to the US to maybe what I would call in sort of non-traditional markets in California. I'm just wondering, if you're targeting kind of point-of-sale US to Canada in your plans for those routes and are you actually spending any money on marketing for point-of-sale US to try to attract passengers from those markets into Canada?

Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst : Maybe just one last quick question for Patrick, just on the -- you had the question on fuel hedging earlier. I mean, what are you guys doing right now on foreign exchange hedgings? I know in the past, you've always had a pretty comprehensive program for FX hedging.