Transat Reports Strong 2025 Financial Results and Positive Outlook for 2026

Transat A.T. Inc. has released its fourth-quarter and full-year 2025 financial results, highlighting a positive outlook for 2026.

2025 was a strong year for Transat, with the company posting its highest-ever adjusted EBITDA. Despite ongoing challenges, including economic uncertainty and continued Pratt & Whitney engine issues, Transat increased adjusted EBITDA by 33% to $271 million, on revenues of $3.4 billion. The company also successfully refinanced its government debt, significantly improving its financial position.

Annick Guérard, President and CEO of Transat, said the company delivered on its 2025 goals and is well positioned for the future.

“We have delivered on the objectives set for fiscal 2025 and continue to make progress toward the full execution of our business plan,” said Guérard. “The tentative agreement reached with our pilots’ union allows us to focus on meeting solid customer demand for leisure travel. In addition, all collective agreements that had expired since 2023 have now been successfully renegotiated for a period extending at least through 2027.”

Guérard said as expected, fourth quarter revenues declined slightly as substantially lower year-end compensation from Pratt & Whitney overshadowed underlying revenue growth driven by higher yields.

Transat expects to accelerate growth in 2026 by:

• New and expanded routes in Africa, Europe, and South America
• Fewer aircraft grounded due to engine issues
• Better use of its existing fleet and optimized scheduling
• Full benefits from the Elevation Program, including improved cost control and revenue management

“We are optimistic about accelerating our growth trajectory in 2026. Targeted network expansion across destinations in Africa, Europe and South America, combined with fewer grounded aircraft and network optimization, should result in increased capacity for 2026. In addition, we expect to derive the full impact from our Elevation Program through revamped cost and revenue management practices,” added Guérard.

Customer deposits for future travel increased to $823 million, reflecting continued strong demand for leisure travel in 2026.