Transat AT Inc
TSX:TRZ
Transat AT Inc
Transat A.T., Inc. develops and markets holiday travel services in packages, including air travel and hotel stays, and air-only formats. The company is headquartered in Montreal, Quebec and currently employs 1,475 full-time employees. The firm's business consists of a Canadian leisure airline, offering international and Canadian destinations, and is vertically integrated with its other services of holiday packages, distribution through a travel agency network and services at travel destinations. The company is a provider of holiday travel particularly as an airline under the Air Transat brand. The company flies to international and Canadian destinations serving its customers at every stage of their trip or stay. Its air transportation program includes flight operations, operational control, aircraft maintenance, cabin operations, ground handling, cargo operations, and security. Its destination service provides a range of products for customers of outgoing tour operators. Its retail distribution consists of providing advice to travelers and selling consumer products. The company also has outgoing tour operators.
Transat A.T., Inc. develops and markets holiday travel services in packages, including air travel and hotel stays, and air-only formats. The company is headquartered in Montreal, Quebec and currently employs 1,475 full-time employees. The firm's business consists of a Canadian leisure airline, offering international and Canadian destinations, and is vertically integrated with its other services of holiday packages, distribution through a travel agency network and services at travel destinations. The company is a provider of holiday travel particularly as an airline under the Air Transat brand. The company flies to international and Canadian destinations serving its customers at every stage of their trip or stay. Its air transportation program includes flight operations, operational control, aircraft maintenance, cabin operations, ground handling, cargo operations, and security. Its destination service provides a range of products for customers of outgoing tour operators. Its retail distribution consists of providing advice to travelers and selling consumer products. The company also has outgoing tour operators.
Revenue & EBITDA: Transat reported full-year revenue of $3.4 billion, up 3.5%, and record adjusted EBITDA of $271 million, a 33% increase year-over-year.
Q4 Weakness: Fourth quarter revenue fell 2.2% to $772 million, mainly due to lower Pratt & Whitney compensation; adjusted EBITDA for the quarter dropped to $71 million from $128 million last year.
Guidance & Outlook: Management expects capacity growth of 5–7% for winter and 6–8% for fiscal 2026, with positive free cash flow projected for next year.
Pilot Agreement: A tentative pilot deal was reached, minimizing the risk of labor disruption over the holidays; the short-term strike threat had only a minimal, temporary impact on bookings.
Cost & Debt Reduction: Significant debt repayment and refinancing lowered interest charges; net long-term debt dropped to $235 million from $543 million year-over-year.
Network Expansion: Several new international routes and partnerships were announced, including a new Toronto–Tirana nonstop flight and agreements with Turkish Airlines and GOL.
