Transat A.T. has reported a fiscal first quarter net loss of $122.5 million or ($3.10) per share on a year-over-year increase in revenue of 5.6 percent to $829.5 million. At January 31, 2025, the carrier had cash and cash equivalents totaling $389.4 million.
On Thursday (March 13, 2025), Transat A.T., Inc. reported their fiscal first quarter financial results for the three month period ending January 31, 2025. The company reported a fiscal first quarter net loss of $122.5 million or ($3.10) per share on a year-over-year increase in revenue of 5.6 percent to $829.5 million. At January 31, 2025, the company had cash and cash equivalents totaling $389.4 million, and customer deposits totaling $1.03 billion, up 0.7 percent versus January 31, 2024.
In Thursday’s announcement, Transat’s President and Chief Executive Officer, Annick Guérard, said,
“The first quarter of fiscal 2025 ended with a better performance compared to the same period last year despite economic uncertainty. Higher traffic and a disciplined capacity increase of 0.5% resulted in a yield improvement of 1.7% year-over-year. Transat's financial results also progressed with revenue growing 5.6% from the first quarter last year and adjusted EBITDA totaling $20.0 million driven by reduced fuel costs and a tight control on operating expenses.
“Our Elevation Program, a comprehensive optimization plan aimed at maximizing long-term profitable growth, continues to advance as anticipated. Once fully deployed, the initiatives implemented to date are expected to generate an annualized adjusted EBITDA run-rate of $37 million. The program remains on track to reach $100 million by mid-2026. The initial phase has optimized our organizational cost structure, with efficiency gains and cost savings generated through the implementation of new technology tools and AI. In the upcoming months, we will move forward revenue management initiatives and various productivity measures to further bolster profitable growth.
“The refinancing of our debt of more than $800 million and the strengthening of our balance sheet remain our top priorities. Assisted by a special advisory committee of the Board of Directors composed of independent directors, we continue to explore all alternatives that will allow us to implement an optimal capital structure over the long term. Although they have not yet led to a permanent solution, discussions with our main lender, the Federal Government, initiated more than 18 months ago, and other stakeholders are still ongoing. Given the complexity of these discussions, and to provide greater flexibility while they continue, we recently extended the maturity dates of our subordinated and secured LEEFF financing agreements with the federal government to April 2027 and November 2026, respectively. Additionally, we renegotiated our revolving credit facility, extending its maturity to November 2026.”
Montreal-based Transat A.T. Inc. (TSX: TRZ), the parent company of Air Transat, was founded 37 years ago. The company has nearly 4,500 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.