Transat A.T. posts $399.8M Q3 profit as revenue climbs year over year

Transat A.T. Inc. swung to a net profit of $399.8 million in its third quarter, reversing a $39.9 million loss a year earlier, as revenue climbed 4.1 per cent.

The Air Transat parent earned $9.97 per share for the quarter ended July 31, versus a loss of $1.03 per share last year, the company shared in a press release Thursday (Sept. 11)

On an adjusted basis, it posted a loss of 28 cents per share, an improvement from 93 cents a year ago. Revenue reached $766.3 million, up from $736.2 million.

The company's president and CEO Annick Guérard said the benefits from Transat’s Elevation Program, an optimization plan aimed at maximizing long-term profitable growth, “are materializing as anticipated.”

It’s driving results towards generating an adjusted EBITDA of $100 million by mid-2026, she said.

“The increase in revenue, combined with rigorous control of operating expenses and favourable fuel costs, resulted in improved operating profitability," said Guérard.

Economic uncertainty and capacity redeployment across the industry "are posing short-term challenges,” she added, noting that Transat does not expect fuel costs to "provide the same significant tailwind as they did so far this year."

“We are maintaining our focus on executing our business strategy through disciplined cost management, fleet optimization and network expansion,” said Guérard.

As for the upcoming winter season, Transat will launch new destinations in South America and Türkiye, along with an extension of transatlantic services.

“We are pursuing our diversification strategy to offer more leisure travel options," said Guérard.

Jean-François Pruneau, chief financial officer of Transat, noted that Transat has achieved a key milestone in reducing its debt and strengthening its balance sheet.

“We also partly monetized our financial compensation from the manufacturer of the GTF² engines for 2025 through two sale-leaseback transactions, and proceeds were partially used to further repay debt and redeem preferred shares,” Pruneau said.

“With a significantly improved capital structure, we can concentrate more efficiently on carrying out our strategic plan and driving long-term operational progress.”

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