Transat reports net loss due to higher fuel costs, Cuba flight suspensions
Transat A.T. Inc. reported a net loss of $106.6 million, or a loss of $2.60 per share, a decline from a net income of $399.8 million or $9.97 per share last year when it included a one-time $345.1 million gain on long-term debt extinguishment.
The airline on Thursday released its results for the third quarter ended July 31, reporting a negative adjusted EBITDA of $0.9 million, compared to an adjusted EBITDA of $81.2 million last year.
“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,” said chief executive Annick Guérard.
Air Transat’s third quarter revenues were up three per cent to $792.7 million from $766.3 million in the same quarter last year. It said this revenue growth is despite a $35 million decline in revenue due to the constrained suspension of flights to Cuba.
Guérard said that while revenues grew with added capacity, competitive market conditions limited the carrier’s ability to pass higher fuel costs on to customers, resulting in softer load factors and yields.
“We remain focused on restoring Transat’s profitability,” she said, adding that the airline will continue to take actions to reduce costs and improve productivity, while focused on the launch of a loyalty program by the end of 2026 and the modernization of cabin interiors, which will expand its premium offering beginning in the second half of 2027.
More to come…
• Email: dpaglinawan@postmedia.com