Transat A.T (TRZ.TO) said the "significant" increase in aviation fuel prices, exacerbated by the prolonged closure of the Strait of Hormuz continues to exert "significant" pressure on global energy markets and is particularly affecting the entire airline industry, resulting in a substantial rise in its operating costs.
For the months of March and April, fuel surcharges had a limited impact on Transat's revenues and only marginally offset the negative impact of the increase in aviation fuel prices, it said. Taking into account the effect of existing hedging instruments, the increase in aviation fuel prices resulted, for these two months, in additional costs of about $70 million, or an increase of more than 75%, compared to March and April 2025.
The additional costs incurred by the company will be reflected in the results for the quarter ended April 30, 2026, which will be released mid-June 2026, it added.
"In addition to the cancellation of our flight program to Cuba until November 2026, the impact on our costs is material and could persist if the situation, which is beyond our control, were to continue," said Transat A.T Chief Executive Annick Guerard. "Despite the measures we are implementing, we are not able to fully eliminate its effects. In this context, we continue to closely monitor developments and adapt our actions accordingly."
Shares of the company closed down 1.5% to $2.66 on Thursday on the Toronto Stock Exchange.