Transat Says Fuel Costs Soared by $105 Million in Third Quarter
by Bruce Parkinson
Air Transat tail.
Transat says higher jet fuel prices continued to have a major debilitating impact during the third quarter.
Soaring fuel prices resulted in approximately $105 million in additional costs during the third quarter, compared with the same period in 2025.
Since the prolonged closure of the Strait of Hormuz, the estimated cumulative impact of these higher fuel prices on the corporation’s costs has reached approximately $175 million at the end of the third quarter.
According to recent industry assessments, including those by the International Air Transport Association (IATA), volatility in energy markets is expected to continue putting pressure on jet fuel costs across the industry in both the short and medium term.
Transat says its ability to pass higher fuel costs on to customers has, to date, remained very limited. The company says it is actively engaged with the federal government to explore potential solutions in this regard.
At the end of July, Transat announced it had secured a financing agreement of up to $150 million with the federal government under the Large Enterprise Emergency Funding Facility for the Aviation Sector (LRSA), a program designed to help airlines manage the sharp increase in aviation fuel costs. The loan has a four-year term and carries an annual interest rate of 3.91%.
The $150 million was the maximum amount available when the LRSA program was announced, so anything more will require additional negotiations.
