Transat A.T. (TRZ.TO) reported wider net loss and a 0.3% fall in revenue in the second quarter, the company said on Thursday.
Second quarter net loss was C$78.9 million, or $1.94 per share, compared to net loss of $22.8 million, or $0.58 per share, in the corresponding year-ago quarter.
The company reported second quarter adjusted net loss per share of $2.58 per share, compared to adjusted net earnings per share of $0.12 per share in the year-ago quarter.
Second quarter adjusted EBITDA amounted to negative $20.7 million, compared with positive $98.4 million in the year-ago quarter, stated the company.
"Second-quarter adjusted EBITDA declined significantly year-over-year, driven primarily by the surge in aviation fuel costs and the prolonged suspension of flights to Cuba," said Jean-Francois Pruneau, Chief Financial Officer of Transat. "Profitability was further affected by lower financial compensation from Pratt & Whitney related to the ongoing engine issue, as well as higher salaries and benefits resulting from the new collective agreement with our pilots. Transat intends to apply to the LASR facility, administered by the Canada Enterprise Emergency Funding Corporation (CEEFC), which would provide additional financial flexibility as we remain focused on executing our strategic priorities."
Second quarter revenue was around $1.027 billion, down 0.3% from $1.031 billion in the corresponding period last year. The consensus estimates compiled by FactSet for sales was $1.069 billion.
The company attributed the decrease in revenues to the suspension of flights to Cuba, resulting in a revenue shortfall of $81.0 million compared with 2025, as well as to the financial compensation from the original equipment manufacturer of GTF engines of $5.2 million, which was down $14.7 million from the second quarter of 2025.