Originally Posted by CloudsBelow

We've much discussed the added ASMs in the leisure market ... Long thought Rouge cannot stimulate enough traffic and will need to scoop a lot of TS traffic and/or have TS to pull back capacity. Seems that's a distinct possibility, hard to imagine a carrier citing fuel volatility as a reason for NOT forecasting profit. Even if a material fuel position is hedged (not likely), it's not like fares have come down. Not good news for those holding their breath the Rouge nightmare might soon be over ...


By Ross Marowits, The Canadian Press
MONTREAL - Transat A.T. faces another tough winter season amid increasing competition, especially from Rouge, Air Canada's low-cost leisure carrier.
The industry is expected to boost the number of seats to sun destinations by more than 10 per cent, much like it did last summer on transatlantic routes.
Even though Transat is cutting its own capacity by six per cent, the Montreal-based leisure tour company said Thursday that it is somewhat insulated since it primarily sells packages with hotels and does not fly to some of the same southern markets as the Air Canada (TSX:AC.TO - News) subsidiary.
"For us it's a game who'se got the best hotel at the best price for the right customer...it's not just a game of capacity," president and CEO Jean-Marc Eustache said Thursday after releasing the company's 2014 results.

Transat (TSX:TRZ-B.TO - News) hopes to improve its bottom line this winter but said fuel price volatility and a weakening Canadian dollar have stopped it from forecasting a profit. It lost $33.6 million in the first two quarters of the year, after losing $37.9 million in the prior winter period.

https://ca.finance.yahoo.com/news/tr...122759938.html