Air Transat to lay off nearly 400 flight attendants: report

Nearly 400 Air Transat flight attendants will temporarily lose their jobs starting November 1, according to a report in La Presse, a Montreal-based newspaper.

Transat A.T. is reducing its flight crew by 20 per cent, which amounts to around 400 people, as the company will transport fewer travellers than expected this winter and fly shorter distances.

Although winter layoffs had taken place before the pandemic, the number of employees affected this year is higher, according to Marie-Hélène Nadeau, president of the Air Transat component of the Canadian Union of Public Employees, as cited in La Presse.

The report notes that before proceeding with the layoffs, Transat offered its employees various mitigation measures, such as unpaid leave and reduced hours. However, it was not enough to avoid job cuts.

READ MORE: Transat consolidates tour operations, Nicole Bursey leaves company

The layoffs will affect employees based in Quebec and the Toronto region, the story says.

Transat affirms that this measure is not linked to the “Elevation Program” that was unveiled as part of its third-quarter results.

This is a business review and recovery plan that aims to generate $100 million in annualized margin within 18 months. (The program could, however, result in the elimination of 80 jobs in the coming weeks, it was later revealed).

Consolidated tour operations

This latest news comes on the heels of Transat consolidating its Canadian tour operator commercial activities, resulting in staffing changes.

Nicole Bursey, who worked at Transat for just under 15 years (starting as a director of sales for Ontario and Atlantic Canada, and then later advancing to commercial director), recently left the company, PAX reported earlier this month.

Julie Sareault is now Transat’s commercial director and will be responsible for overseeing the company’s tour operator commercial efforts nationally.

The reorganization was done to “simplify and streamline our sales activities,” said company spokesperson Bernard Côté.

Fewer passengers expected

Ms. Gagné explained that the layoffs come “in the context of the seasonality of our airline activities and a reduction in capacity announced at the start of the year.”

Transat was initially planning for a 19 per cent increase in its capacity in 2024. However, this target was lowered and now sits at around the 10 per cent mark.

READ MORE: “Industry-wide pressure”: Transat reports Q3 loss, launches review of business

Throughout the year, Transat A.T. has faced several challenges, including stiff competition, engine recalls, and the threat of a union strike.

These factors have collectively put additional strain on Transat’s already fragile financial position.

In its first three quarters, Transat reported a combined net loss of $155.3 million versus a loss of $28.5 million during the same period a year earlier.

In September, when Transat announced a $39.9 million Q3 loss, Annick Guérard, president and CEO of Transat, blamed the decline on “evolving market conditions and industry-wide pressure.”

“Demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty,” Guérard said at the time. “Capacity increases throughout the industry also added to competitive pressure and negatively impacted yields.”

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