Transat A.T. Inc. Reports Results for the Fourth Quarter of Fiscal 2025

Executive Summary

• Transat A.T. Inc. reported an all‑time record adjusted EBITDA of C$271 million for fiscal 2025, up 33% year‑over‑year.
• Full‑year net income turned positive at C$241.9 million (C$6.06 per share) versus a loss in FY 2024; Q4 still posted a modest net loss of C$12.5 million.
• The company completed its LEEFF debt restructuring, cutting long‑term debt from C$762.2 M to C$350.0 M (as of Oct 31 2025).

Key Details

• Full‑Year 2025 Financial Highlights
• Revenue: C$3,398.5 million (+3.5% YoY)
• Adjusted EBITDA: C$271.0 million (up from C$203.2 M in 2024)
• Net income: C$241.9 million (C$6.06/share) vs. loss of C$114.0 M in 2024
• Free cash flow: ‑C$45.0 million, improvement from ‑C$122.1 M in 2024

• Cash & equivalents (Oct 31 2025): C$164.9 million

• Q4 2025 Financial Highlights

• Revenue: C$771.6 million (‑2.2% YoY)
• Adjusted EBITDA: C$71.4 million (down from C$128.4 M)
• Net loss: C$12.5 million (C$0.31/share) vs. profit of C$41.2 M in Q4 2024

• Free cash flow: ‑C$194.2 million, driven by higher operating cash usage and lack of sale‑leaseback activity seen in prior year

• Debt Restructuring (LEEFF)

• Long‑term debt reduced to C$400.0 million from C$803.1 M (Oct 31 2025 vs. 2024).
• Repayment of secured LEEFF financing principal: C$41.4 M fully repaid.
• Mandatory pre‑payment on unsecured debenture: C$13.7 million.
• Redemption of 6,243,026 Series 4 Preferred Shares for C$16.3 million.

• Drawdown under subordinated working‑capital facility: C$30.0 million.

• Liquidity & Capital Structure

• Total debt (incl. lease liabilities, deferred grant, warrant liability): C$1.76 billion, down from C$2.28 billion YoY.

• Net debt after cash: C$1.60 billion vs. C$2.02 billion prior year.

• Operational Metrics

• Yield up 2.3% for the year; traffic up 0.2%.
• Capacity increased 0.8% YoY.

• Q4 revenue decline mainly due to lower Pratt & Whitney GTF engine compensation (‑C$28.2 M). Ex‑compensation, revenue would have risen 1.5%.

• Forward‑Looking Statements

• Elevation Program expected to add C$100 million of adjusted EBITDA by mid‑2026.
• FY 2026 capacity target: +6%–8% (available seat‑miles).
• Network expansion planned for Africa, Europe and South America; fewer grounded aircraft anticipated.

Notable Quotes

• “Transat posted all‑time record adjusted EBITDA in fiscal 2025… we have delivered on the objectives set for fiscal 2025 and continue to make progress toward the full execution of our business plan.” – Annick Guérard, President & CEO
• “The successful restructuring of our government debt proved to be a key milestone in 2025… interest expenses will decrease substantially in the upcoming year while debt maturity dates have been extended until 2035.” – Jean‑François Pruneau, CFO

Conference call scheduled for Dec 18, 2025 at 10:00 a.m. ET; first‑quarter 2026 results to be released on Mar 10, 2026.