Transat’s fuel bill soars, adding $175M in costs as prices stay high

Transat A.T. says soaring jet fuel prices have added approximately $175 million to its costs as of the end of its third quarter, with continued volatility in energy markets expected to keep pressure on the airline industry.

The Montreal-based company said Friday (Aug. 21) that higher jet fuel prices resulted in approximately $105 million in additional costs during the third quarter compared with the same period in 2025.

Since the prolonged closure of the Strait of Hormuz, Transat estimates the cumulative impact of elevated fuel prices on its costs has reached approximately $175 million.

READ MORE: Transat secures up to $150M in federal aid amid higher fuel costs

The update comes as airlines continue to contend with higher operating costs tied to volatile global energy markets.

Transat pointed to recent industry assessments, including those from the International Air Transport Association (IATA), indicating that volatility in energy markets is expected to continue putting pressure on jet fuel costs in both the short and medium term.

Passing those higher costs on to travellers, however, has so far proved difficult.

Transat said its ability to pass increased fuel costs on to customers has remained “very limited.”

The company says it is now engaged with the federal government to explore potential solutions to address the impact.

In July, Transat announced it had secured access to up to $150 million in federal financial assistance to help offset the impact of rising jet fuel prices.

The agreement followed Ottawa’s announcement of a loan program for airlines affected by oil prices, reduced flight schedules and weaker profit forecasts.

Air Canada has indicated that it does not expect to use the program.

WestJet also said it “strongly opposes” the assistance, citing its potential to distort the market.

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