08:06 AM EDT, 09/12/2024 (MT Newswires) -- Transat (TRZ.TO) swung to a third-quarter loss as revenue fell.

The leisure company's adjusted loss of $43 million, or $1.10 per share, missed the consensus analyst forecast for an adjusted loss of $0.47, according to Capital IQ. Transat reported an adjusted profit of $42.3 million, or $1.10 per share, in last year's third quarter.

Revenue fell 1.4% to $736.2 million, missing the Capital IQ forecast of $765.3 million. The decrease is due to lower airline unit revenues, which were down 9.7%, due to higher competition, industry-wide overcapacity, the Pratt & Whitney GTF2 engine issue and economic uncertainty. The company said it agreed to financial compensation in the form of credits from Pratt & Whitney.

"Transat's third-quarter results reflect evolving market conditions and industry-wide pressure as recently indicated by other carriers. Demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty. Capacity increases throughout the industry also added to competitive pressure and negatively impacted yields," said Chief Executive Annick Guerard.