by Natasha Lair
Last updated: 8:40 AM ET, Fri September 12, 2025
Transat A.T. Inc. reported its third-quarter results for fiscal 2025, with improved revenues, profitability, and a significant gain tied to debt restructuring.
The company reported revenues of $766.3 million for the quarter ended July 31, 2025, representing a 4.1% increase from $736.2 million in the same quarter a year earlier. Adjusted EBITDA rose to $81.2 million from $48.0 million last year.
Net income came in at $399.8 million, or $9.97 per share, compared with a net loss of $39.9 million, or $1.03 per share, in the same period of 2024. The result included a $345.1 million gain from the restructuring of long-term debt.
“Transat delivered improved operating and financial performances in the third quarter of fiscal 2025. Revenues grew 4.1%, driven by a 2.6% year-over-year yield improvement and a 1.0% passenger traffic increase,” said Annick Guérard, president and CEO of Transat.
“The increase in revenue, combined with rigorous control of operating expenses and favourable fuel costs, resulted in improved operating profitability.”
Capacity in the quarter was up 2.4% from last year, with transatlantic routes — the company’s main summer program — increasing 4.2%.
Looking ahead, Guérard said, “economic uncertainty and capacity redeployment across the industry are posing short-term challenges for load factors, and we do not expect fuel costs to provide the same significant tailwind as they did so far this year.”
To date, Transat’s load factors for the fourth quarter are 1.2 percentage points lower than the same period last year, while unit revenues (yield) are 3.1% higher year-over-year but currently trending downward.
CFO Jean-François Pruneau said the refinancing agreement concluded in the quarter was a “key milestone” in reducing debt and strengthening Transat’s balance sheet.
“We also partly monetized our financial compensation from the manufacturer of the GTF engines for 2025 through two sale-leaseback transactions, and proceeds were partially used to further repay debt and redeem preferred shares,” he said.
Free cash flow remained negative at $122.1 million, an improvement over the negative $168.7 million recorded a year earlier. Cash and cash equivalents stood at $357.2 million as of July 31.
Transat’s Elevation Program, which aims to deliver $100 million in adjusted EBITDA improvements by mid-2026, is said to be on track.
For the nine-month period ended July 31, 2025, revenues totalled $2.63 billion, up 5.3% from last year, while adjusted EBITDA reached $199.6 million, more than double the $74.8 million recorded in 2024.
Long-term debt and deferred government grants fell to $383.9 million as of July 31, down from $803.1 million at the end of October 2024, reflecting the impact of restructuring and repayments.
Transat will announce its fourth-quarter results on December 17, 2025.
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