Improved operating and financial performance

Third-quarter highlights:

• Revenues of $766.3 million, up 4.1% from $736.2 million last year
• Adjusted EBITDA of $81.2 million, compared to $48.0 million last year
• Net income of $399.8 million ($9.97 per share), including $345.1 million from long-term debt restructuring, compared to a net loss of $39.9 million ($1.03 per share) last year
• Negative free cash flow of $122.1 million, compared to negative $168.7 million last year
• Cash and cash equivalents of $357.2 million as at July 31, 2025
• Elevation Program initiatives implemented to date are on track to deliver $100M in adjusted EBITDA by mid-2026, in line with the objective
• Conclusion of the LEEFF debt restructuring, reducing the amount owed under the program from $762.2 million as of last quarter to $333.9 million
• Sale-leaseback transactions valued at $61.5 million for two Pratt & Whitney GTF engines; proceeds used to reduce debt and fund operations

MONTRÉAL, Sept. 11, 2025 /CNW/ – Transat A.T. Inc. today reported its third quarter 2025 financial results.

“Transat delivered improved operating and financial performances in the third quarter of fiscal 2025. Revenues grew 4.1%, driven by a 2.6% year-over-year yield improvement and a 1.0% passenger traffic increase. Benefits from our Elevation Program, a comprehensive optimization plan aimed at maximizing long-term profitable growth, are materializing as anticipated and continue to drive results towards generating adjusted EBITDA of $100 million by mid-2026. The increase in revenue, combined with rigorous control of operating expenses and favourable fuel costs, resulted in improved operating profitability,” said Annick Guérard, President and Chief Executive Officer of Transat.

“Looking ahead, economic uncertainty and capacity redeployment across the industry are posing short-term challenges for load factors, and we do not expect fuel costs to provide the same significant tailwind as they did so far this year. In this context, we are maintaining our focus on executing our business strategy through disciplined cost management, fleet optimization and network expansion. As for the upcoming winter season, we are excited with our broader offering. With new destinations in South America and Türkiye, along with the extension of  transatlantic services, we are pursuing our diversification strategy to offer more leisure travel options,” added Ms. Guérard.

“Closing our refinancing agreement during the third quarter was a key milestone in achieving our objectives of reducing debt and strengthening our balance sheet. We also partly monetized our financial compensation from the manufacturer of the GTF engines for 2025 through two sale-leaseback transactions, and proceeds were partially used to further repay debt and redeem preferred shares. With a significantly improved capital structure, we can concentrate more efficiently on carrying out our strategic plan and driving long-term operational progress,” said Jean-François Pruneau, Chief Financial Officer of Transat.

Third-quarter results

For the quarter ended July 31, 2025, revenues reached $766.3 million, up 4.1% from $736.2 million in the corresponding period last year. The increase was mainly attributable to a 2.6% increase in airline unit revenues (yield) and a 1.0% increase in traffic expressed in revenue-passenger-miles (RPM) compared with 2024. In addition, following the agreement with the manufacturer of the GTF engines, a financial compensation of $7.0 million was recorded in revenues. Reflecting disciplined management, the Corporation’s capacity was up 2.4% from the corresponding period last year, while capacity for transatlantic routes, the main program during this period, increased by 4.2%.

Adjusted EBITDA amounted to $81.2 million, compared with $48.0 million in 2024. This increase was mainly attributable to higher revenues, increased productivity, as well as a 14% decrease in fuel prices compared with the corresponding period of 2024.

Nine-month results

For the nine-month period ended July 31, 2025, revenues reached $2,626.9 million, up 5.3% from $2,494.9 million in the corresponding period a year ago. For the nine-month period, yield increased 2.2%, traffic was up 1.2% and the Corporation recorded a financial compensation of $27.0 million related to the GTF engines. Network-wide capacity increased by 1.9% compared to the same period in 2024.

For the nine-month period, adjusted EBITDA totaled $199.6 million, compared with $74.8 million for fiscal 2024. The increase was mainly attributable to revenue growth, productivity gains and lower fuel prices.