MONTREAL — Transat reported a loss of $12.5 million in its latest quarter compared with a profit of $41.2 million in the same quarter last year.

Revenue in what was Transat’s fourth quarter totalled $771.6 million, down from $788.8 million a year ago when it benefited from compensation related to Pratt & Whitney GTF engine issues.

Excluding the impact of this lower compensation, Transat says revenue increased by 1.5% compared with a year ago.

“We are optimistic about accelerating our growth trajectory in 2026. Targeted network expansion across destinations in Africa, Europe and South America, combined with fewer grounded aircraft and network optimization, should result in increased capacity for 2026. In addition, we expect to derive the full impact from our Elevation Program through revamped cost and revenue management practices,” said Annick Guérard, President & CEO, Transat.

Last week Transat dodged a costly work stoppage when it reached a new tentative contract with its pilots.

“In terms of profitability, despite the impact of certain unfavourable provisions in the fourth quarter, Transat still delivered solid adjusted EBITDA growth for the year. On the refinancing front, the successful restructuring of our government debt proved to be a key milestone in 2025. This significant debt reduction enables us to pursue growth initiatives and complete the implementation of our optimization program. On top of these benefits, interest expenses will decrease substantially in the upcoming year while debt maturity dates have been extended until 2035. Ultimately, we can now focus on executing our strategy to create long-term value for our shareholders,” said Transat’s CFO, Jean-François Pruneau.

With file from The Canadian Press

Lead image caption: Air Transat aircraft are seen on the tarmac at Montreal-Trudeau International Airport in Montreal, on April 8, 2020 (THE CANADIAN PRESS/Paul Chiasson)