Extract from the Nat Bank TRZ analysisInteresting for the demand and pricing
Winter demand and pricing look good
For the winter, Transat is planning capacity at 97% of 2019 levels, and so far, booking trends look quite positive with load factors similar to 2019 sitting at ~55% across the network. Yields (pricing) are 15% above 2019 levels, which will offset higher fuel costs and FX headwinds. Interestingly, booking momentum has accelerated over the past month with Transat noting a 21% increase. This suggests that despite pressure on consumers from higher interest rates and inflation, leisure travel remains a high priority spending item. As noted in our Sun Destination report, many Canadians have been deprived of their annual sun destination trip in the winter over the past three years due to the pandemic, so we expect to see significant pent-up demand manifest this winter.