MONTREAL — Transat A.T. Inc. reported a first-quarter net loss of $122.5 million, compared with a loss of $61 million in the same quarter last year.
The company says the loss amounted to $3.10 per diluted share for the quarter ended Jan. 31, compared with a loss of $1.58 per diluted share a year earlier.
On an adjusted basis, Transat says it lost $1.90 per share in its latest quarter compared with an adjusted loss of $1.97 per share in the same quarter last year.
Revenue for the quarter totalled $829.5 million, up from $785.5 million a year ago.
The increase came as traffic expressed in revenue-passenger-miles rose 1% compared with 2024.
Transat’s capacity was up 0.5% compared with a year earlier.
“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,” said Transat’s President and CEO, Annick Guérard.
“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,” she added.
“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,” said Guérard.
“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.”
With file from The Canadian Press
