Transat A.T. reports Q3 loss amid rising fuel costs

Transat A.T. reported a third-quarter net loss of approximately $107 million, a significant decline from the $400 million profit recorded in the same period last year. The company attributed the loss primarily to sharply rising fuel costs, which increased by 50% to $138 million compared to the previous year. Fuel prices rose to US$3.74 per gallon, up from US$2.40 a year earlier.

Despite the loss, revenue rose 3% year-over-year to roughly $793 million, supported by a 6% increase in traffic and capacity. However, profitability was constrained by intense market competition and aggressive pricing across the Canadian travel sector. The company also noted challenges related to Pratt & Whitney’s GTF2 engines and revenue inefficiencies stemming from the partial redeployment of capacity originally intended for Cuba.

To manage these financial pressures, Transat will receive an additional $250 million in emergency financing from the Canadian federal government, supplementing $150 million previously received. CEO Annick Guérard stated the company is focusing on cost management, capacity discipline, and strategic initiatives, including the launch of a loyalty program by late 2026 and cabin interior modernizations starting in mid-2027.