The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst
: So I just wanted to confirm, I think you guys said July ended up profitable for you, but positive net cash flow. So I'm just wondering, what is the
magnitude of the operating margin you saw in July on adjusted basis? And what kind of margins would you be expecting for the remaining summer?
Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. No, worries Patrick. But if you can provide any color directionally, how should we think about the next 4, 5 months. So you have August and
September being still strong months of the summer. And then October, November are shoulder months. So would you expect the profitability,
assuming fuel stays flat, profitability should be higher in August, September and lower October, November?
Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst
: Then moving on to the future beyond summer for the winter outlook. So it sounds like from your disclosures that the sun market revenue is tracking
ahead of 2019 at this point. What are you expecting or what are you seeing early on in terms of revenue or demand for transatlantic, domestic or
transporter markets you have in the winters?
Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. And a last one before I am done or, what is the intention behind getting another $100 million credit facility under LEEFF? I know you haven't
drawn anything on that, but it seems just like adding your financial flexibility. Is there anything you plan for using this facility for?
Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst
: I guess I want to come back to the, I guess, the pricing question, particularly around the upcoming winter. It does sound like pricing is looking
pretty solid there. But I'm wondering if you can maybe give us some idea of -- based on the current jet fuel price, how much of that sort of cost
headwind are you able to recover from pricing based on what you're seeing so far in the winter bookings?
Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst
: Okay. That's helpful. And I guess I want to -- maybe a little more detailed question or I just want to get a sense of kind of the cost structure for
Transat now that things are kind of fully recovered. I'm not looking for any specific numbers per se. But now that you're kind of back to a level of
capacity that you were at in 2019, maybe you can sort of talk about what line items in your cost structure have significantly changed versus 2019?
Sort of -- obviously, you've got a more efficient aircraft fleet. But beyond that, what other, I guess, significant structural costs have you taken out
of the company? And then maybe you can talk about it in more specifics to the line item by line item.
Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst
: Okay. No, that's helpful. And you mentioned the ability to fly, I guess, nearly the 2019 capacity level with the fewer aircraft. What about, I guess,
total employment level? I mean if we compare the, I guess, sort of go-forward employment level versus 2019, how many fewer employees can you
run the business with?
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