April 4 Canadian travel operator Transat AT Inc said agreements reached with its employees to reduce operating costs and internalizing its medium-haul operations should save about C$8 million this year.
The company plans to add Boeing B737 narrow-body jets to Air Transat's fleet starting next year to internalize medium-haul operations from Canada to Mexico, the Caribbean and Florida.
"A return to profitability remains our primary goal, and operating costs, particularly air costs, are an essential factor in profitability for any tour operator," said Transat Chief Executive Jean-Marc Eustache.
For the medium-haul operations, Transat relied on a third-party partner since 2003.
The company also plans to save C$15 million next year and C$30 million per year from 2015, as a result of these cost-saving initiatives.
Agreements reached with Transat employees to reduce operating costs do not include job cuts or salary compromises, spokeswoman Debbie Cabana told Reuters.
Shares of the company were up 2 percent at C$4.81 in morning trade on the Toronto Stock Exchange.