Transat closes out 2025 with a full-year profit, aims to boost flight volumes

Article contentMONTREAL — Travel company Transat A.T. Inc. on Thursday reported its third quarterly loss this year, but still closed out 2025 by turning an annual profit for the first time since 2018 ahead of a push to boost capacity in the new year.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe Air Transat owner saw revenues and traffic volumes dip in its fourth quarter, resulting in a $12.5-million loss versus net income of $41.2 million in the same period the year before.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentBut last year’s windfall came mostly from compensation doled out by aircraft engine giant Pratt & Whitney after it recalled turbofans for inspection and repair. Air Transat continues to ground planes due to the manufacturer’s engine recall, which has also impacted numerous other airlines.Article contentArticle content“Fourth-quarter revenues declined slightly as substantially lower year-end compensation from Pratt & Whitney overshadowed underlying revenue growth driven by higher yields” — a metric that gauges the average revenue an airline garners per paying passenger for each mile flown — said chief executive Annick Guerard in a release.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe CEO also highlighted a “volatile macroeconomic environment” that has made some Canadians more hesitant to shell out dollars on trips abroad.Article contentOthers seem more eager than ever, however. The number of Canadians returning from overseas rose nearly 12 per cent year-over-year to 1.1 million in November, according to preliminary figures from Statistics Canada. Meanwhile, return trips by air from the United States dropped more than 19 per cent.Article contentAir Transat largely flies to destinations in Mexico, the Caribbean and Europe.Article contentAs demand for flights to Florida, Las Vegas and other American cities continues to plummet, the airline is seeking out destinations farther afield.Article content“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” _ between six and eight per cent — Guerard said.Article contentArticle contentShe also noted that Transat has renegotiated all major collective agreements through 2027 and beyond, paving the way for relative labour peace at the airline.Article contentLast week, Transat narrowly avoided a costly work stoppage when it reached a last-minute tentative deal with the union representing its 750 pilots that boosted their wages by more than 50 per cent over five years.Article contentThe showdown came at a particularly fraught time for the company as it struggles to manage a large net debt load — $1.6 billion — and fend off a coup attempt from an activist investor.Article contentEarlier this month, media mogul Pierre Karl Peladeau _ Transat’s second-biggest shareholder with 9.5 per cent of the company’s shares — demanded a strategic overhaul and a board shakeup that would give him and two allies seats.Article contentIn response, Transat announced on Monday a shareholder meeting scheduled for March 10 to vote on the board overhaul and other changes sought by Peladeau, the CEO of Quebecor Inc.Article contentOn Thursday, Transat reported that fourth-quarter revenue totalled $771.6 million, down two per cent from $788.8 million a year ago.Article contentOn an adjusted basis, the Montreal-based company said it lost 42 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year, and well below analysts’ expectations of 12 cents per share, according to financial markets firm LSEG Data & Analytics.Article contentThis report by The Canadian Press was first published Dec. 18, 2025.Article contentCompanies in this story: (TSX:TRZ)Article contentTrending Philip Cross: The sad story of Justin Trudeau’s 'youthful idiots' FP Comment Posthaste: Here's where home prices plunged the most in tough year for Canada's housing market News Welcome to the K-shaped economy: Canadians look back on a 'brutal,' 'great' year in Trump's trade war Economy Is a $2.75 million portfolio enough for Halifax empty nesters to retire early?

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Personal Finance Trump official signals support for trade deal with Canada, Mexico Economy