Transat A. T. Inc. Reports Fiscal Second Quarter 2025 Net Loss of $22.9 Million or $0.58 per Share

Transat A.T. Inc. has reported a fiscal second quarter 2025 net loss of $22.9 million or ($0.58) per share on a year-over-year increase in revenue of 5.9 percent to $1.03 billion.  At April 30, 2025, the company had cash and cash equivalents totaling $532.6 million.

Air Transat Airbus A321neo - Courtesy Airbus

On Thursday (June 12, 2025), Transat A. T. Inc. reported their fiscal second quarter financial results for the period ending April 30, 2025.  The company reports a fiscal second quarter net loss of $22.9 million or ($0.58) per share on a year-over-year increase in revenue of 5.9 percent to $1.03 billion.  Transat ended the period with $532.6 million in cash and cash equivalents.

In Thursday’s announcement, Transat’s President and CEO, Annick Guérard, said,

“Transat delivered improved operating and financial performances in the second quarter of fiscal 2025, building on the positive momentum that began in the fourth quarter of 2024.  During the second quarter, revenue grew 5.9%, driven by a 2.0% year-over-year yield improvement and a 1.6% passenger traffic increase.  Tight control of operating expenses led to productivity gains, while lower fuel costs further supported performance, resulting in adjusted EBITDA of $98.4 million.  Despite persistent economic uncertainty, Transat is methodically executing its business strategy through disciplined fleet optimization and network expansion.  Recent additions of new routes and changes to our program have further strengthened our leadership in providing leisure travel services to Canadian consumers.

“We are making significant progress through our Elevation Program, a comprehensive optimization plan aimed at maximizing long-term profitable growth. The initiatives implemented to date are expected to generate an annualized adjusted EBITDA run rate of $67 million and we remain on track to reach our goal of $100 million. Our teams are fully committed to successfully executing the plan and we expect to benefit directly from cost-saving and revenue-generating initiatives beginning in the second half of the current year.”

Also commenting on the company’s fiscal second quarter results, Transat’s Chief Financial Officer, Jean-François Pruneau, added,

“We are pleased to have reached a refinancing agreement with our main lender.  This represents a major milestone, as it significantly reduces our debt, strengthens our balance sheet, and positions Transat to further implement its long-term strategic plan.  In addition, we have reached a new compensation agreement with the manufacturer of the GTF engines for the 2025 and 2026 fiscal years, partially recorded during the second quarter as non-cash revenue.  We are currently evaluating opportunities to monetize this financial compensation.”

Montreal-based Transat A.T. Inc. (TSX: TRZ), the parent company of Air Transat, was founded 37 years ago.  The company has 5,000 employees and is a leading leisure airline in Canada, as well as the top integrated tourism company.  Transat offers vacation packages, hotel accommodations and air service to destinations across the Americas, Europe and the Caribbean.  With codeshare and interline partnerships, Air Transat offers service to over 280 destinations.  In 2024, Air Transat was voted the ‘World’s Best Leisure Airline’ at the Skytrax World Airline Awards.  The carrier is currently renewing their fleet with the most fuel-efficient and environmentally aircraft in their class, as part of Air Transat’s commitment to a healthier environment, knowing that this is essential for the preservation of the magnificent destinations they serve.

Source: Transat A.T. Inc.