MONTREAL, June 17, 2025 /CNW/ – Air Transat has been named the World’s Best Leisure Airline at the 2025 Skytrax World Airline Awards for the seventh time, and for the third consecutive year. This achievement highlights the Canadian airline’s commitment to providing a quality travel experience that combines comfort, hospitality and attention to detail at every stage of the journey.

The awards ceremony took place today at the Paris Air Show in France. Pamela Lloyd-Bergeron, Air Transat’s Director, In-Flight Service, accepted the award along with members of the airline’s flight crew.

“Receiving this award is an honour for everyone at Air Transat,” said Pamela Lloyd-Bergeron. “It reflects our dedication to delivering excellent service and memorable travel experiences for our passengers. Every day, our in-flight crews work passionately to create a warm atmosphere on board, where comfort, attentiveness and attention to detail make all the difference. This distinction is entirely theirs.”

Annick Guérard, President and Chief Executive Officer of Transat, added: “This recognition is a testament to the unwavering commitment of our teams to placing the client at the heart of every decision we make. It is thanks to their openness, their genuine care, their constant desire to go above and beyond and their pleasure in making people travel that we continue to stand out worldwide.”

“Air Transat has established itself as a leader in the leisure travel segment,” commented Edward Plaisted, Chief Executive Officer of Skytrax. “Its consistent recognition in this category reflects high levels of passenger satisfaction and the airline’s ability to deliver a reliable and enjoyable experience tailored to leisure travellers.”

The World’s Best Leisure Airline Award is based on passenger satisfaction with the quality of products and services offered by leisure airlines, including both onboard and at the airports. Air Transat has previously won this award in 2012, 2018, 2019, 2021, 2023, and 2024, and was recognized as North America’s Best Leisure Airline in 2022.

About the World Airline Awards

The World Airline Awards are wholly independent and impartial, introduced in 1999 to provide a customer satisfaction study that is truly global. Travellers across the world vote in the largest airline passenger satisfaction survey to determine the award winners. The awards are referred to by media around the world as “the Oscars of the aviation industry”.

All costs of the Survey and Awards event are paid by Skytrax, and airlines do not pay any entry or registration fee. There are no charges for use of the Award logos and results.

The online survey operated from September 2024 to May 2025, and more than 100 customer nationalities participated, with 22.3 million eligible entries counted in the results. All survey entries were screened to identify IP and user information, with duplicate, suspect and ineligible entries deleted. Over 325 airlines feature in the survey results.

The customer survey was provided in English, French, Portuguese, Spanish, Turkish, Russian, Japanese, and Chinese.

About Air Transat

Founded in Montreal 37 years ago, Air Transat is a leading travel brand voted 2025 World’s Best Leisure Airline by passengers at the Skytrax World Airline Awards. Its program offers access to international destinations, mainly in Europe, the Caribbean, the east coast of the United States, South America and North Africa. Air Transat is recognized for its excellent customer service. Its fleet includes some of the most energy-efficient aircraft in their category. Based in Montreal with major hubs in YUL Montréal-Trudeau International Airport and Toronto Pearson Airport (YYZ), it has 5,000 employees with a common purpose to bring people closer together. Air Transat is a business unit of Transat A.T. Inc.  www.airtransat.com

Revenue Growth and Improved Productivity
Balance Sheet Strengthened through Debt Restructuring Agreement

Second-quarter highlights:

• Revenues of $1,031.1 million, up 5.9% from $973.2 million last year
• Adjusted EBITDA of $98.4 million, compared to $30.2 million last year
• Net loss of $22.9 million ($0.58 per share), compared to a net loss of $54.4 million ($1.40 per share) last year
• Free cash flow of $142.3 million, compared to $109.8 million last year
• Cash and cash equivalents of $532.6 million as at April 30, 2025
• Elevation optimization Program initiatives implemented to date are expected to deliver an annualized adjusted EBITDA run-rate of $67.0 million
• Reached an agreement in principle for the restructuring of the LEEFF debt incurred in connection with the COVID-19 pandemic

MONTRÉAL, June 12, 2025 /CNW/ – Transat A.T. Inc. today reported its second quarter 2025 financial results.

“Transat delivered improved operating and financial performances in the second quarter of fiscal 2025, building on the positive momentum that began in the fourth quarter of 2024. During the second quarter, revenue grew 5.9%, driven by a 2.0% year-over-year yield improvement and a 1.6% passenger traffic increase. Tight control of operating expenses led to productivity gains, while lower fuel costs further supported performance, resulting in adjusted EBITDA of $98.4 million. Despite persistent economic uncertainty, Transat is methodically executing its business strategy through disciplined fleet optimization and network expansion. Recent additions of new routes and changes to our program have further strengthened our leadership in providing leisure travel services to Canadian consumers,” said Annick Guérard, President and Chief Executive Officer of Transat.

“We are making significant progress through our Elevation Program, a comprehensive optimization plan aimed at maximizing long-term profitable growth. The initiatives implemented to date are expected to generate an annualized adjusted EBITDA run rate of $67 million and we remain on track to reach our goal of $100 million. Our teams are fully committed to successfully executing the plan and we expect to benefit directly from cost-saving and revenue-generating initiatives beginning in the second half of the current year,” added Ms. Guérard.

“We are pleased to have reached a refinancing agreement with our main lender. This represents a major milestone, as it significantly reduces our debt, strengthens our balance sheet, and positions Transat to further implement its long-term strategic plan. In addition, we have reached a new compensation agreement with the manufacturer of the GTF² engines for the 2025 and 2026 fiscal years, partially recorded during the second quarter as non-cash revenue. We are currently evaluating opportunities to monetize this financial compensation,” said Jean-François Pruneau, Chief Financial Officer of Transat.

Second-quarter results

For the quarter ended April 30, 2025, revenues reached $1,031.1 million, up 5.9% from $973.2 million in the corresponding period last year. The increase was mainly attributable to a 2.0% increase in airline unit revenues (yield) and a 1.6% increase in traffic expressed in revenue-passenger-miles (RPM) compared with 2024. Reflecting disciplined management, the Corporation’s capacity was up 2.6% from the corresponding period last year, while capacity for sun routes, the main program during this period, remained stable. In addition, following the agreement entered into with the original equipment manufacturer of the Geared turbofan (GTF) engines, a financial compensation of $20.0 million was recorded in revenues.

Adjusted EBITDA amounted to $98.4 million, compared with $30.2 million in 2024. This increase was mainly attributable to higher revenues, increased productivity, as well as a 18% decrease in fuel prices compared with the corresponding period of 2024.

Six-month results

For the six-month period ended April 30, 2025, revenues reached $1,860.6 million, up 5.8% from $1,758.7 million in the corresponding period a year ago. For the six-month period, network-wide capacity increased by 1.6% compared with 2024, while capacity for sun routes, the main program during this period, increased by 0.5%. Overall, traffic was 1.3% higher than in 2024. The revenue increase also reflects the financial compensation noted above.

For the six-month period, adjusted EBITDA¹ totaled $118.4 million, compared with $26.8 million for fiscal 2024. The increase was mainly attributable to revenue growth, productivity gains and lower fuel prices.

Cash flow and financial position

Cash flow related to operating activities amounted to $207.8 million during the second quarter of 2025, compared with $183.2 million for the same period last year, mainly due to higher net income before non-cash operating items this year versus last. After accounting for investing activities and repayment of lease liabilities, free cash flow¹ reached $142.3 million during the quarter, compared with $109.8 million for the corresponding period last year.

As at April 30, 2025, cash and cash equivalents stood at $532.6 million, compared to $260.3 million as at October 31, 2024. Cash and cash equivalents in trust or otherwise reserved mainly resulting from travel package bookings totaled $295.6 million as at April 30, 2025, compared with $484.9 million as at October 31, 2024, reflecting the seasonal nature of operations. Customers deposits for future travel totaled $888.7 million as at April 30, 2025, comparable to the amount recorded a year earlier.

During the six-month period ended April 30, 2025 the Corporation received net proceeds of $30.6 million from the final of the four previously announced spare engine sale-leaseback transactions, completed in early November.

Long-term debt and deferred government grant totaled $812.2 million as at April 30, 2025, compared to $803.1 million as at October 31, 2024. Reflecting the proceeds mentioned above and the change in cash, the amount net of cash stood at $279.6 million, down from $542.7 million as at October 31, 2024.

Event after the reporting period

On June 5, 2025, the Corporation announced that it had reached an agreement in principle with the Canada Enterprise Emergency Funding Corporation (CEEFC) for the restructuring of all its debt contracted under the Large Employer Emergency Financing Facility (LEEFF), managed by the CEEFC. As of April 30, 2025, this debt had a principal amount of $773.4 million and a carrying value of $762.2 million, including the deferred government grant amount. Following the transaction, outstanding debt with CEEFC is expected to decrease from $773.4 million to $333.7 million.

Key indicators

To date, load factors for the summer period, which consists of the third and fourth quarters, are 1.2 percentage points lower compared to the same date in fiscal 2024, while airline unit revenues, expressed as yield, are 1.7% higher than they were at this time last year.

For fiscal year 2025, the Corporation expects an available capacity increase of 1.0%, measured in available seat-miles, compared to 2024.

About Transat

Founded in Montreal 37 years ago, Transat has achieved worldwide recognition as a provider of leisure travel particularly as an airline under the Air Transat brand. Voted World’s Best Leisure Airline by passengers at the 2024 Skytrax World Airline Awards, it flies to international destinations. By renewing its fleet with the most energy-efficient aircraft in their category, it is committed to a healthier environment, knowing that this is essential to its operations and the destinations it serves. Based in Montreal, Transat has 5,000 employees with a common purpose to bring people closer together. www.transat.com