Transat Reports Q2, Prepares To Resume Operations

Newly secured financing – after a quarter without revenues – has Transat A.T. Inc. preparing to ‘gradually’ resume its operations at the end of July.

In reporting its second quarter results (for the period ending April 30, 2021), Transat’s president and CEO, Annick Guérard said that: “Following a quarter without revenues, progress made on vaccinations allows us to plan for a gradual resumption starting July 30.”

Guérard continued: “We hope that a safe travel recovery plan can be deployed as soon as possible and will lead to a lifting of restrictions in the near future. All indications are that our customers are eager to make use of some of their savings from recent months to travel. We’re excited about welcoming them back soon.”

She noted as well that: “The financing we secured will allow us to roll out our plan over the coming years. Our strong brand, our employees’ commitment and the transformation we have undertaken and which will continue over the coming years will allow us to position ourselves again as our customers’ favourite leisure travel company and become more profitable than before the pandemic.”

In the second quarter of 2021, Transat is reporting:

  • Revenues of $7.6 million
  • Adjusted operating loss of $51.0 million (operating loss of $86.5 million)
  •  Adjusted net loss3 of $103.3 million (net loss attributable to shareholders of $69.6 million)

Financial position and financing:

  • Cash and cash equivalents of $346.1 million as at April 30
  • Agreement entered into with the Government of Canada for borrowing up to $700.0 million in additional liquidity, of which $310.0 million can be used to refund customers
  • Maturity for amounts drawn on existing facilities extended until April 29, 2023.
  • In total, the available financing will therefore represent a maximum of $820.0 million, of which $220.0 million was drawn as at April 30, 2021.

Resumption of operations:

  • * Airline operations suspended since January 29, 2021
  • * Partial resumption planned for July 30, 2021


  • Termination of the arrangement with Air Canada by mutual consent
  • Implementation of strategic plan and continuing discussions with Gestion MTRHP

In reporting its second quarter results, Transat pointed out that the global air transportation and tourism industry has faced a collapse in traffic and demand.

Travel restrictions, uncertainty about when borders will reopen, both in Canada and at certain destinations the Corporation flies to, the imposition of quarantine measures and testing requirements both in Canada and other countries, as well as concerns related to the pandemic and its economic impacts are creating significant demand uncertainty, at least for fiscal 2021.

For the first half of winter 2021, the company rolled out a reduced winter program. On Jan.29, 2021, following the Canadian government’s request to not travel to Mexico and the Caribbean, and the introduction of new quarantine measures and COVID-19 testing requirements, Transat announced the complete suspension of all its regular flights and the repatriation of its clients to Canada.

Currently, it expects to resume its operations on July 30, but made it clear that it cannot predict all the impacts of COVID-19 on its operations and results, or precisely when the situation will improve.

To that end, the company has implemented a series of operational, commercial and financial measures, including new financing and cost reduction measures, aimed at preserving its cash. And it is monitoring the situation daily to adjust these measures as it evolves.

However, until the company is able to resume operations at a sufficient level, the COVID-19 pandemic will have significant negative impacts on its revenues, cash flows from operations and operating results.

And while the availability of a vaccine makes it possible to hope for the resumption of operations at a certain level during 2021, Transat said it does not expect such level to reach the pre-pandemic level before 2023.

Preserving cash is a priority for the company with respect to the COVID-19 pandemic, and it has taken the actions discussed in the Overview section of the MD&A included in its 2020 Annual Report.

Other opportunities are being evaluated to achieve this objective and the following additional actions in response to the COVID-19 pandemic were taken during the first half of 2021:

  • The Corporation completed its efforts to obtain long-term financing. As described in the Financial position section, the available financing therefore represents a maximum of $820.0 million, of which $220.0 million was drawn as at April 30, 2021.
  • During the quarter ended January 31, 2021, two Airbus A330s and one Boeing 737-800 were returned to lessors early.
  • The Corporation continuously adjusts its flight program as the situation evolves. Before the suspension of its airline operations on January 29, 2021, Transat offered a reduced winter program of international flights departing from Montréal, Toronto and Québec City.
  • The Corporation is negotiating with its suppliers, including aircraft lessors, to benefit from cost reductions and changes in payment terms, and is continuing to implement measures to reduce expenses and investments.
  • The Corporation is continuing to make use of the Canada Emergency Wage Subsidy (“CEWS”) for its Canadian workforce, which enabled it to finance part of the salaries of its staff still at work and to propose employees temporarily laid off to receive a part of their salary equivalent to the amount of the grant received, with no work required.
  • As at April 30, 2021, cash and cash equivalents totalled $346.1 million.

Go to for more.