Transat A.T. Inc. Reports Results for the First Quarter of Fiscal 2026 Adjusted EBITDA Increases 68% Year Over Year

Executive Summary

• Transat A.T. Inc. reported Q1 FY 2026 revenue of C$870.7 M (+5.0% YoY) and Adjusted EBITDA of C$33.6 M, a 68% increase versus the prior year.
• Net loss narrowed to C$29.5 M (C$0.73 per share) from C$122.5 M a year earlier; free cash flow turned positive at C$246.6 M.
• The company repaid $25 M on its revolving credit facility and $30 M on its subordinated working‑capital facility, leaving a net cash position of C$11.7 M.

Key Details

• Revenue: C$870.7 million (up 5.0% YoY).
• Adjusted EBITDA: C$33.6 million (vs. C$20.0 million last year), a 68% YoY increase.
• Net Loss: C$29.5 million, or C$0.73 per share (vs. C$122.5 million, C$3.10 per share last year).
• Free Cash Flow: Positive C$246.6 million (up from C$129.1 million YoY).
• Cash & Equivalents: C$386.7 million as of Jan 31 2026.
• Long‑Term Debt & Deferred Government Grant: C$375.0 million (down from C$813.4 million a year earlier).
• Debt Repayments:
• $25 M repaid on revolving credit facility during the quarter.
• $30 M repaid on subordinated working‑capital facility on Feb 13 2026.
• Operational Metrics:
• Traffic growth of 2.2% (revenue‑passenger‑miles).
• Yield improvement for a fifth consecutive quarter.
• Capacity offered up 1.0%; sun‑route capacity up 4.4%.
• $5.1 M engine compensation recorded in revenue from GTF engine OEM agreement (Q2 2025).
• Strategic Partnership: Announcement of a loyalty‑program partnership with Desjardins Group, supported by Visa Canada; program slated for launch H2 2026.
• Temporary Flight Suspension: All flights to Cuba suspended until April 30 2026 due to anticipated fuel shortages; capacity redeployed to South America routes.
• Guidance / Outlook:
• FY 2026 capacity expected to rise 5%–7% (available seat‑miles) versus 2025.
• Second‑quarter results scheduled for release on June 11 2026.

Notable Quotes

“Transat delivered solid financial results in the first quarter of 2026, reflecting continued momentum from the diligent execution of its profitable growth strategy… a strong 68% year‑over‑year increase in adjusted EBITDA.” – Annick Guérard, President & CEO

“Adjusted EBITDA grew significantly to $34 million, driven by higher revenues and improved cost efficiency… we reimbursed $25 million on our revolving credit facility and repaid $30 million on our working capital facility.” – Jean‑François Pruneau, CFO