Transat Seeks C$150 Million Loan as Fuel Costs Deepen Losses

The airline reported a second-quarter loss of C$79 million, a significant widening from the C$22.9 million loss recorded during the same period last year. On an adjusted basis, the company swung to an Ebitda loss of C$20.7 million, hampered largely by fuel expenses that eroded C$70 million from its bottom line between March and April alone. CEO Annick Guerard noted that while initial surcharges on bookings helped offset early cost hikes, recent market instability has curtailed the company's ability to maintain higher pricing.

Revenue for the quarter reached C$1.03 billion, falling short of analyst expectations. Despite these pressures, the airline is seeing some stability in forward-looking indicators. Customer deposits for future travel grew to C$955.1 million by the end of April, and both load factors and unit yields for the upcoming summer season are tracking slightly ahead of the previous year. To further ease the burden, the government has temporarily suspended federal fuel excise taxes through September 7, providing a modest reduction of C$0.04 per liter on aviation fuel.