Transat's costs balloon to $70 million amid rising fuel prices

Amid rising jet fuel prices, Transat A.T. says it incurred additional costs of around $70 million for the months of March and April.

Sharing an update on the fuel situation on Friday (May 15), the airline revealed that its costs are 75 per cent higher compared to the same period last year. 

The company said this will be reflected in its results for the quarter ended April 30, 2026, which will be released mid-June.

"The significant current volatility in aviation fuel prices is occurring amid exceptional circumstances affecting the industry on a global scale,” said Annick Guérard, president and CEO of Transat, in a statement.

“In addition to the cancellation of our flight program to Cuba until November 2026, the impact on our costs is material and could persist if the situation, which is beyond our control, were to continue.”

“Despite the measures we are implementing, we are not able to fully eliminate its effects. In this context, we continue to closely monitor developments and adapt our actions accordingly."

Operating costs rise

Rising aviation fuel prices, driven by the prolonged closure of the Strait of Hormuz, brought on by the conflict in Iran, continue to place significant strain on global energy markets and the airline industry, substantially increasing operating costs.

Since the beginning of this period of volatility, Transat has implemented various measures aimed at limiting the impact of the increase on its costs.

This includes the introduction of fuel surcharges on new bookings and adjustments to its 2026 program, representing a reduction of approximately six per cent of planned capacity from May to October.

The measures are similar to those adopted by other airlines worldwide.

In Canada, WestJet (inclusive of Sunwing Vacations), Air Canada, Air Canada Vacations, Flair Airlines and Porter have all signalled that they will raise ticket prices or introduce fuel surcharges as a way to cope with escalating fuel costs.

For the months of March and April, fuel surcharges had a “limited impact” on Transat's revenues and only “marginally offset” the negative impact of the increase in aviation fuel prices, the company said.

“This is due in particular to the fact that a very large portion of bookings for this period had been made prior to the onset of the crisis,” Transat says.

In this context, the effect of fuel surcharges on Transat's revenues is expected to remain limited in the short term and “may only partially offset the increase in aviation fuel prices in the following months.”

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