Transat A.T. reports CAD 21 million adjusted EBITDA loss
Transat A.T. was hit by a perfect storm of external shocks, mainly a sharp jump in fuel costs and the sudden suspension of flights to Cuba, which together cut adjusted EBITDA by about CAD 95 million.
The company posted a CAD 21 million adjusted EBITDA loss versus a CAD 98 million profit a year earlier, while net loss widened to CAD 79 million as revenue stayed roughly flat but capacity disruptions and lower Pratt & Whitney compensation weighed on results.
Management is responding with fuel surcharges, a 6% capacity reduction from May to October, and a planned application to Canada’s LASER facility for up to CAD 150 million in funding, while still expecting elevated fuel prices to pressure second-half performance.