MONTREAL — Transat A.T. Inc. reported a Q2 2025 net loss of $22.9 million, compared with a loss of $54.4 million in the same quarter last year as its revenue rose 5.9%.
Transat said the loss amounted to 58 cents per share for the quarter ended April 30 compared with a loss of $1.40 per share a year earlier.
On an adjusted basis, Transat says it earned 12 cents per share in its latest quarter, up from an adjusted loss of $1.21 per share in the same quarter last year.
Revenue for what was the company’s second quarter totalled $1.03 billion, up from $973.2 million a year ago.
Last week, Transat announced a deal to reduce its total debt with a federal Crown corporation by more than half to $334 million.
Most of that reduction is due to about $380 million of debt forgiven under the agreement in principle.
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,” she added.
Guérard noted that Transat is “making significant progress through our Elevation Program, a comprehensive optimization plan aimed at maximizing long-term profitable growth. … 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.”
Transat’s CFO Jean-François Pruneau added that the company is pleased to have reached a refinancing agreement. “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 GTF2 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,” he said.
With file from The Canadian Press
