Revenues of $870.7 million, up 5.0% from $829.5 million last year
Adjusted EBITDA1 of $33.6 million, compared to $20.0 million last year
Net loss of $29.5 million ($0.73 per share), versus net loss of $122.5 million ($3.10 per share) last year
Positive free cash flow1 of $246.6 million, compared to positive $129.1 million last year
Cash and cash equivalents of $386.7 million as at January 31, 2026
Long-term debt and deferred government grant totaled $375.0 million, compared to $813.4 million last year
Announcement of a strategic partnership with Desjardins Group, supported by Visa Canada, in connection with the loyalty program scheduled to launch in the second half of 2026
MONTRÉAL, March 10, 2026 /CNW/ - Transat A.T. Inc. reported today its first quarter 2026 financial results.
"Transat delivered solid financial results in the first quarter of 2026, reflecting continued momentum from the diligent execution of its profitable growth strategy. 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 EBITDA1. 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," said Annick Guérard, President and Chief Executive Officer of Transat.
"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. 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," added Ms. Guérard.
"We are encouraged by improved profitability in the first quarter. Adjusted EBITDA1 grew significantly to $34 million, driven by higher revenues and improved cost efficiency, reflecting the positive impact of our Elevation Program. In addition, a strong operating cash flow enhanced our financial position, enabling us to reimburse $25 million on our revolving credit facility during the quarter, followed by a $30 million repayment on our working capital facility in early February," said Jean-François Pruneau, Chief Financial Officer of Transat.
First-quarter results
For the quarter ended January 31, 2026, revenues reached $870.7 million, up 5.0% from $829.5 million in the corresponding period last year. This growth was primarily driven by a 2.2% increase in traffic, expressed in revenue-passenger-miles and by a 1.4% increase in airline unit revenues (yield). For the quarter, across the entire network, the capacity offered increased by 1.0%, compared with 2025, while the capacity for sun routes, the main program during this period, increased by 4.4%. In addition, following the agreement entered into with the original equipment manufacturer of the GTF2 engines in the second quarter of 2025, a financial compensation of $5.1 million was recorded in revenues during the quarter ended January 31, 2026.
Adjusted EBITDA1 amounted to $33.6 million, compared with $20.0 million in 2025. This variation resulted primarily from higher airline unit revenues and traffic growth, combined with cost-control initiatives, reflecting the benefits of the Elevation Program. These factors were partially offset by ongoing costs related to Pratt & Whitney GTF1 engine issues and operational disruptions in Jamaica caused by Hurricane Melissa, despite the redeployment of capacity to other destinations.
Cash flow and financial position
Cash flows related to operating activities generated $296.4 million during the first quarter of 2026, compared with a cash generation of $168.6 million for the same period last year, mainly due to more favourable changes in working capital balances and higher profitability this year versus last. After accounting for investing activities and repayment of lease liabilities, free cash flow1 was positive $246.6 million during the quarter, compared with positive $129.1 million for the corresponding period last year.
As at January 31, 2026, cash and cash equivalents stood at $386.7 million, compared to $164.9 million as at October 31, 2025. Cash and cash equivalents in trust or otherwise reserved mainly resulting from travel package bookings totaled $528.1 million as at January 31, 2026, compared with $430.0 million as at October 31, 2025, reflecting the seasonal nature of operations.
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.
Long-term debt and deferred government grant totaled $375.0 million as at January 31, 2026, compared to $400.0 million as at October 31, 2025. This decrease is attributable to the repayment of $25.0 million on the Corporation's revolving term credit facility.
Long–term debt and deferred government grant, net of cash and cash equivalents, stood at a net cash position of $11.7 million, compared to a net debt position of $235.1 million as at October 31, 2025.
On February 13, 2026, the Corporation repaid the $30.0 million balance on its subordinated working capital facility. The facility remains available for future drawdowns.
______________________________1 Geared turbofan ("GTF")
Key indicators
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 unfavorable variance mostly weighting on the back-end of the quarter.
For fiscal year 2026, the Corporation expects a 5% to 7% increase in capacity, measured in available seat-miles, compared to 2025.
Conference call
The first quarter 2026 conference call will take place on Tuesday, March 10, 2026, 3:00 p.m. To join the conference call without operator assistance, you may register by entering your phone number here to receive an instant automated call back.
You can also dial direct to be entered into the call by an operator:Montreal: 514 400-3794North America (toll-free): 1 800 990-4777Name of conference: Transat The conference will also be accessible live via webcast: click here to register.
An audio replay will be available until March 17, 2026, by dialing 1 888 660-6345 (toll-free in North America), access code 34505 followed by the pound key (#). The webcast will remain available for 90 days following the call.
Second-quarter 2026 results will be announced on June 11, 2026.
(1) Non-IFRS financial measures
Transat prepares its financial statements in accordance with International Financial Reporting Standards ["IFRS"]. We will occasionally refer to non-IFRS financial measures in the news release. These non-IFRS financial measures do not have any meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. They are intended to provide additional information and should not be considered as a substitute for measures of performance prepared in accordance with IFRS. All dollar figures are in Canadian dollars unless otherwise indicated.
The following are non-IFRS financial measures used by management as indicators to evaluate ongoing and recurring operational performance.
Adjusted operating income (loss) or adjusted EBITDA: Operating income (loss) before depreciation, amortization and asset impairment expense, reversal of impairment of the investment in a joint venture, the effect of changes in discount rates used for accretion of the provision for return conditions, changes in market price of CORSIA Eligible Emissions Units (carbon credits), restructuring costs and other significant unusual items, and including premiums related to derivatives that matured during the period. The Corporation uses this measure to assess the operational performance of its activities ...
