Softness on Atlantic routesFrom Nat bank Fin. : extract from the Transat analysis.
NOTE by Tempo 1 : As already noted, NBF has the most sound analysis for the airlines fares. They tracking airfares regularly. NBF has a 30$ target for AC.
Summer yields softer. With its update in May, Transat noted that it is experiencing some yield softness on Atlantic routes, which accounts for most company revenue in the summer (Q3 and Q4). The company indicates that its load factor for the summer is currently tracking about 2 pts. lower y/y with yields down 8%. We have been tracking peak summer period airfares on several key European routes through the booking curve beginning in January and our latest survey completed in late May shows y/y prices on the routes we track down over 20% on average versus last year (noting that fares were exceptionally strong last summer), which was a worse y/y decline compared to our prior fare survey completed in mid-April