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Transat A.T. Inc. Reports Results for the Third Quarter of Fiscal 2026
Prolonged fuel cost pressures continue to affect profitability
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Revenues of $792.7 million, up 3% from $766.3 million last year
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Negative adjusted EBITDA1 of $0.9 million, compared to adjusted EBITDA1 of $81.2 million last year
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Net loss of $106.6 million ($2.60 per share), versus net income of $399.8 million ($9.97 per share) last year, which included a one-time $345.1 million gain on long-term debt extinguishment
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Negative free cash flow1 of $301.8 million, compared to negative $122.1 million last year
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Cash and cash equivalents of $243.0 million as at July 31, 2026
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$150.0 million Liquidity for Airline Sector Resilience Facility (LASR) now fully drawn, with $125.0 million drawn during the quarter and the $25.0 million balance in September
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Additional $250.0 million in financing secured from the Canada Enterprise Emergency Fund (CEEFC) under the existing LEEFF agreement subsequent to quarter-end
MONTREAL, Sept. 10, 2026 /CNW/ — Transat A.T. Inc. (TSX: TRZ) reported today its third quarter 2026 financial results ended on July 31.
“Our third-quarter results were significantly impacted by sustained higher fuel prices, which remained elevated well beyond expectations and were the primary driver of lower profitability. While revenues grew with added capacity, competitive market conditions limited our ability to pass these higher fuel costs on to customers, resulting in softer load factors and yields. We appreciate the support received from CEEFC, which provides additional liquidity and financial flexibility as we navigate this challenging environment,” said Annick Guérard, President and Chief Executive Officer of Transat.
“We remain focused on restoring Transat’s profitability. We continue to take concrete actions to reduce costs and improve productivity, while maintaining focus on two major strategic initiatives: the launch of our loyalty program by the end of 2026 and the modernization of our cabin interiors, which will significantly expand our Premium offering beginning in the second half of 2027,” added Annick Guérard.
“The increase in fuel prices was the primary driver of our results in the quarter. On a gross basis, fuel costs increased by $105 million year over year, reflecting a 56% increase in fuel prices, bringing the estimated cumulative impact since the beginning of the fuel crisis to approximately $175 million. We drew $125 million under the LASR facility upon closing and an economic benefit of $25 million related to the loan was accounted for as a reduction of the gross fuel cost increase. Subsequent to quarter-end, we drew the remaining balance to bring the facility to its full $150 million and secured an additional $250 million from CEEFC under our existing LEEFF agreement, further supporting our liquidity,” said Jean–François Pruneau, Chief Financial Officer of Transat.
