Profitability impacted by an unprecedented industry-wide fuel crisis

Second-quarter highlights:

• Revenues of $1,027.6 million, down 0.3% from $1,031.1 million last year
• Negative adjusted EBITDA of $20.7 million, compared to an adjusted EBITDA of $98.4 million last year
• Net loss of $79.0 million ($1.94 per share), versus net loss of $22.9 million ($0.58 per share) last year
• Free cash flow of $59.1 million, compared to $142.3 million last year
• Cash and cash equivalents of $390.1 million as at April 30, 2026
• Repayment of $55.0 million of long-term debt, bringing the balance of long-term debt and deferred government grant to $320.0 million, compared to $812.2 million last year
• Intent to apply to the Government of Canada’s new Liquidity for Airline Sector Resilience facility for up to $150 million in funding to help offsetting the prolonged impact of rising fuel costs

MONTRÉAL, June 11, 2026 /CNW/ – Transat A.T. Inc. reported today its second quarter 2026 financial results ended on April 30.

“Following a solid first quarter that continued the positive momentum of fiscal 2025 and reflected the tangible benefits of our strategic initiatives, second-quarter results were disappointing as factors largely beyond our control severely impacted profitability. The suspension of flights to Cuba and the material increase in aviation fuel prices, an industry-wide crisis, resulted in an estimated negative impact of $95 million on adjusted EBITDA¹, of which approximately $70 million is attributable to higher fuel costs in March and April. The impact of rising aviation fuel prices persisted through May, resulting in additional costs compared to the same period last year. Transat has implemented specific measures to mitigate these adverse effects, including surcharges on new bookings and selective capacity adjustments across its network. While surcharges on new bookings were initially well absorbed by consumers and effectively mitigated the impact of rising fuel costs, recent market volatility has weakened pricing power,” said Annick Guérard, President and Chief Executive Officer of Transat.

“We welcome the introduction by the Government of Canada of the Liquidity for Airline Sector Resilience (LASR) facility, which acknowledges the significant fuel cost pressures currently facing airlines. This initiative reflects the essential role aviation plays in the Canadian economy. Transat intends to apply to the LASR facility, which would provide meaningful support as we continue to navigate the current environment with discipline while maintaining our focus on customers and stakeholders,” added Annick Guérard.

“Second-quarter adjusted EBITDA declined significantly year-over-year, driven primarily by the surge in aviation fuel costs and the prolonged suspension of flights to Cuba. Profitability was further affected by lower financial compensation from Pratt & Whitney related to the ongoing engine issue, as well as higher salaries and benefits resulting from the new collective agreement with our pilots. Transat intends to apply to the LASR facility, administered by the Canada Enterprise Emergency Funding Corporation (CEEFC), which would provide additional financial flexibility as we remain focused on executing our strategic priorities,” said Jean-François Pruneau, Chief Financial Officer of Transat.

Second-quarter results

For the quarter ended April 30, 2026, revenues reached $1,027.6 million, down 0.3% from $1,031.1 million in the corresponding period last year. The decrease in revenues was attributable to the suspension of flights to Cuba, resulting in a revenue shortfall of $81.0 million compared with 2025, as well as to the financial compensation from the original equipment manufacturer of GTF engines of $5.2 million, which was down $14.7 million from the second quarter of 2025. The decrease in revenues was partially offset by a 3.9% increase in traffic, expressed in revenue-passenger-miles. For the quarter, across the entire network, the capacity increased by 4.8%, compared with 2025, while the capacity for sun routes, the main program during this period, increased by 1.7%. Airline unit revenues (yield) decreased by 0.7%. Persistent issues with Pratt & Whitney’s GTF engines continued to result in less effective revenue management, alongside inefficiencies caused by having to unexpectedly redeploy part of the capacity after suspending flights to Cuba in peak season, owing to fuel supply issues at destination airports.

MONTREAL, June 4, 2026 /CNW/ – Air Transat, voted the World’s Best Leisure Airline at the 2025 Skytrax World Airline Awards, announces a new interline partnership with Iberia, further expanding its footprint in Spain and enhancing travel options for its customers.

Through this agreement, Air Transat passengers can now connect via Madrid (MAD) to over 20 popular destinations including Palma de Mallorca (PMI), Ibiza (IBZ), Tenerife (TFN and TFS) and Alicante (ALC). 

“Spain is one of Air Transat’s most important international markets, and we are proud to be the airline offering the widest range of Spanish destinations from Canada,” said Sebastian Ponce, Chief Revenue Officer at Transat. “This new partnership with Iberia builds on that leadership by giving our customers seamless access, via Madrid, to even more destinations across Spain. It strengthens our position in the market while offering travellers greater flexibility, convenience and confidence throughout their journey.”

Air Transat continues to steadily expand its presence in Spain, a key pillar of its network. The airline now serves five Spanish destinations, including four operated year-round – Madrid, Barcelona, Málaga and Valencia – providing consistent connectivity across seasons. The recent addition of Las Palmas de Gran Canaria (LPA) to its winter program further diversifies its offering, tapping into strong demand for European sun destinations while complementing its established portfolio.             

“This partnership with Air Transat reflects Iberia’s broader commitment to strengthening connectivity between North America and Spain,” said Celia Muñoz Espín, Iberia’s Commercial Strategy, Distribution & Alliances Director. “The agreement will make easier for Air Transat customers to connect, via Madrid-Barajas, with Iberia-operated destinations across Spain under a single itinerary and it coincides with the launch of Iberia’s new Toronto-Madrid route on June 13. Iberia is currently exploring collaboration opportunities in Toronto to further strengthen domestic connectivity within Canada and enhance the overall customer proposition”.  

Passengers travelling under this interline agreement will benefit from a streamlined journey, including a single itinerary, baggage checked through to their final destination, and additional protection in case of schedule disruptions.  

Flights are now available for booking via airtransat.com and through travel professionals.

About Air Transat
Founded in Montreal in 1987, 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, America and North Africa. Air Transat is recognized for its excellent customer service. Its fleet is primarily composed of 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 5,500 employees with a common purpose to bring people closer together. Air Transat is a business unit of Transat A.T. Inc. (TSX: TRZ). www.airtransat.com

MONTREAL, May 15, 2026 /CNW/ – Transat A.T. Inc. (“Transat” or the “Company”) is providing an update on the impacts of the significant increase in aviation fuel prices, exacerbated by the prolonged closure of the Strait of Hormuz. This increase continues to exert significant pressure on global energy markets and is particularly affecting the entire airline industry, resulting in a substantial rise in our operating costs.

Since the beginning of this period of volatility, Transat has implemented various measures aimed at limiting, to the extent possible, the impact of the increase on its costs. These measures include, among others, the introduction of fuel surcharges on new bookings and targeted adjustments to the 2026 program representing to date a reduction of approximately 6% of planned capacity for the period from May to October 2026. These measures are similar to those adopted by several other airlines worldwide.

For the months of March and April, fuel surcharges had a limited impact on Transat’s revenues and only marginally offset the negative impact of the increase in aviation fuel prices. This is due in particular to the fact that a very large portion of bookings for this period had been made prior to the onset of the crisis. In this context, the effect of fuel surcharges on Transat’s revenues is expected to remain limited in the short term and may only partially offset the increase in aviation fuel prices in the following months. Taking into account the effect of existing hedging instruments, the increase in aviation fuel prices resulted, for these two months, in additional costs of approximately $70 million, or an increase of more than 75%, compared to March and April 2025. The additional costs incurred by the Company will be reflected in the results for the quarter ended April 30, 2026, which will be released mid-June 2026.

“The significant current volatility in aviation fuel prices is occurring amid exceptional circumstances affecting the industry on a global scale. In addition to the cancellation of our flight program to Cuba until November 2026, the impact on our costs is material and could persist if the situation, which is beyond our control, were to continue. Despite the measures we are implementing, we are not able to fully eliminate its effects. In this context, we continue to closely monitor developments and adapt our actions accordingly.” said Annick Guérard, President and Chief Executive Officer.

About Transat A.T. Inc.
Founded in Montreal in 1987, 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 2025 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 nearly 5,000 employees with a common purpose to bring people closer together. (TSX: TRZ) www.transat.com

MONTREAL, April 22, 2026 /CNW/ – Transat A.T. Inc. (“Transat” or the “Company”) announced that it has revised its 2026 program, with targeted adjustments on certain routes, in response to the unprecedented aviation fuel crisis and exceptional volatility in energy markets. These measures are intended to optimize deployed capacity by prioritizing routes with the strongest performance outlook, as part of the Company’s ongoing operational discipline. The changes implemented to date represent a 6% reduction in planned capacity from May to October 2026.

Consistent with the rest of the airline industry, Transat has been facing significant fuel price volatility for several weeks, as well as supply constraints in certain regions, including Cuba. The Company has therefore adjusted its program by reducing the number of frequencies on some routes to Europe and the Caribbean and by extending the suspension of service to Cuba until October. Supported by Transat’s resilient program, affected customers are being assisted through the offering of alternative travel options, in accordance with the Company’s practices.

“The recent volatility in aviation fuel prices reflects an exceptional environment affecting the entire sector. We are closely monitoring the situation, as cost pressures continue to be felt across the industry. We will continue to optimize our program based on demand, which remains strong. Additional measures may be implemented depending on how the situation evolves, beyond our control,” said Annick Guérard, President and Chief Executive Officer.

About Transat A.T. Inc.
Founded in Montreal in 1987, 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 2025 Skytrax World Airline Awards, it flies to international destinations. Air Transat’s fleet includes some of the most energy-efficient aircraft in their category. Based in Montreal, Transat has 5,000 employees with a common purpose to bring people closer together. (TSX: TRZ) www.transat.com