Transat A.T. reported third-quarter fiscal 2026 revenue of C$792.7 million, up 3.4% from C$766.3 million a year earlier, as higher passenger traffic and capacity helped offset the suspension of flights to Cuba.
The Montreal-based leisure travel company reported an operating loss of C$63.4 million compared with operating income of C$24.2 million in the prior-year quarter.
Transat recorded a net loss of C$106.6 million, or C$2.60 per diluted share, compared with net income of C$399.8 million, or C$9.39 per diluted share, in the third quarter of 2025.
The prior-year period included a C$345.1 million gain on long-term debt extinguishment, making the reported year-over-year comparison particularly significant.
On an adjusted basis, Transat posted an operating loss of approximately C$0.9 million compared with adjusted operating income of C$81.2 million a year earlier.
Adjusted net loss widened to C$89.5 million, or C$2.18 per share, from C$11.8 million, or C$0.28 per share.
Passenger traffic increased 5.8% during the quarter, while total network capacity increased 6.1%. Capacity on transatlantic routes increased 8.4%.
Overall load factor was 84.7%, compared with 85.0% a year earlier, while airline yield declined 1.0%.
The suspension of flights to Cuba reduced quarterly revenue by approximately C$35 million.
Persistent Pratt & Whitney GTF engine issues also continued to constrain revenue management and required Transat to redeploy capacity, while increased competition and broader economic conditions pressured results.
Fuel represented one of the largest pressures on profitability.
Aircraft fuel expense increased 49.3% to C$237.8 million during the quarter as U.S. dollar-denominated fuel prices increased 56% and higher capacity increased consumption.
For the first nine months of fiscal 2026, revenue increased 2.4% to C$2.69 billion, while Transat reported a C$215.1 million net loss compared with net income of C$254.4 million a year earlier.
Nine-month adjusted net loss increased to C$242.3 million from C$82.0 million.
Transat ended July with C$243.0 million of cash and cash equivalents and total net debt of approximately C$1.51 billion, down from C$1.60 billion at October 31, 2025.
During the quarter, Transat also established a new Liquidity for Airline Sector Resilience facility with the Government of Canada to address liquidity pressures related primarily to higher fuel prices.
The facility provides Transat with borrowing capacity based on incremental fuel costs compared with 2025, up to C$150 million. The company drew an initial C$125 million on July 28.
