MONTREAL — Transat A.T. Inc. reported a loss of $79.0 million in its latest quarter as it was hit by rising fuel prices and a suspension of flights to Cuba.

The travel company says the loss amounted to $1.94 per diluted share for the quarter ended April 30.

The result compared with a loss of $22.9 million or 58 cents per diluted share in the same quarter last year.

Revenue totalled $1.028 billion for the quarter, down from $1.031 billion a year earlier.

On an adjusted basis, Transat says it lost $2.58 per share in its latest quarter compared with an adjusted profit of 12 cents per share in the same quarter last year.

Transat chief executive Annick Guérard said the results were disappointing.

“Following a solid first quarter that continued the positive momentum of fiscal 2025 and reflected the tangible benefits of our strategic initiatives, second-quarter results were disappointing as factors largely beyond our control severely impacted profitability,” she said. 

“The suspension of flights to Cuba and the material increase in aviation fuel prices, an industry-wide crisis, resulted in an estimated negative impact of $95 million on adjusted EBITDA, of which approximately $70 million is attributable to higher fuel costs in March and April.

“The impact of rising aviation fuel prices persisted through May, resulting in additional costs compared to the same period last year.”

Though Transat has adjusted capacity and implemented surcharges on new bookings, which were well absorbed by consumers and helped mitigate the impact of rising fuel costs, “recent market volatility has weakened pricing power,” added Guérard.

Following news earlier this week that the federal government has offered a loan to struggling airlines amid rising fuel costs, Guérard said she welcomed the Liquidity for Airline Sector Resilience (LASR) facility.

“This initiative reflects the essential role aviation plays in the Canadian economy. Transat intends to apply to the LASR facility, which would provide meaningful support as we continue to navigate the current environment with discipline while maintaining our focus on customers and stakeholders,” she said.

With files from The Canadian Press

Lead image caption: A traveller walks past an Air Transat logo at Montreal-Pierre Elliott Trudeau International Airport in Montreal, Dec. 9, 2025 — Credit The Canadian Press/Christinne Muschi