Transat posts Q1 results; reports enhanced performance year over year

Transat A.T. Inc. has shared its results for the first quarter ended January 31, 2025.

“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 Annick Guérard, President and Chief Executive Officer of Transat.

“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,” added Guérard.

“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. 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,” concluded Guérard.

First quarter results

For the three-month period ended January 31, 2025, revenues reached $829.5 million, up 5.6% from $785.5 million in the corresponding period last year. The increase in revenues is attributable to a 1.7% increase in airline unit revenues (yield) and a 1.0% increase in traffic expressed in revenue-passenger-miles (RPM) compared with 2024.

Reflecting disciplined management, the Corporation’s capacity was up 0.5% from the corresponding period last year.

Adjusted EBITDA¹ stood at $20.0 million, compared with negative adjusted EBITDA¹ of $3.3 million a year ago. This increase reflects revenue growth, a 15% decrease in fuel prices compared with the corresponding period of 2024, as well as lower aircraft rent expenses. These factors were partially offset by slightly higher operating expenses associated with capacity expansion.

Second-quarter 2025 results will be announced on June 12, 2025.