Transat “Moving in the Right Direction” With Q1 Financial Results

With revenues up 5%, EBITDA of $33.6 million compared to $20 million last year and a loss narrowed from $122.5 million to $29.5 million, Transat is encouraged by its first quarter 2026 results.

“Transat delivered solid financial results in the first quarter of 2026, reflecting continued momentum from the diligent execution of its profitable growth strategy,” said president and CEO Annick Guérard.

“Key initiatives implemented in the last several quarters, including our Elevation Program, diversification of network routes and airline partnerships, produced a 5% revenue growth and a strong 68% year-over-year increase in adjusted EBITDA. 

In terms of operating metrics, we are equally pleased with our performance, highlighted by traffic growth of 2.2% and a fifth consecutive quarter of yield improvement. Overall, our achievements demonstrate that Transat is moving in the right direction in laying the foundation for long-term shareholder value creation,” Guérard added.

Transat realized positive free cash flow of $246.6 million, compared to $129.1 million last year. Notably, long-term debt and deferred government grant totaled $375.0 million, compared to $813.4 million last year.

“Following the end of the quarter, we temporarily suspended all flights to Cuba until April 30 due to an anticipated fuel shortage at destination airports and organized repatriation flights to Canada to ensure the safety and well–being of our customers,” Guérard said.

“Importantly, we redeployed a portion of the affected capacity through our South network, where we have seen an influx in demand. We will continue to monitor the situation closely to determine when flights to Cuba can safely resume.” 

Transat said a strong operating cash flow enhanced its financial position, enabling the company to reimburse $25 million on its revolving credit facility during the quarter, followed by a $30 million repayment on its working capital facility in early February.

Customers deposits for future travel totaled $1,089.6 million as at January 31, 2026, compared to $823.3 million as at October 31, 2025.

To date, for the second quarter of 2026, airline unit revenues, expressed as yield, are in line with last year in a context of approximately 5% higher capacity, measured in available seat-miles. 

Load factors are 1.8 percentage points lower than at the same time last year, with the unfavourable variance mostly weighting on the back-end of the quarter.

For fiscal year 2026, Transat expects a 5% to 7% increase in capacity, measured in available seat-miles, compared to 2025.