$TRZ.TO

Transat Price Target Raised to $2.25 at TD

TD Securities lowered its price target on Transat A.T. Inc. (TRZ.TO) to $2.25 from $2.50 on Friday.Analyst Tim James maintained a Hold rating on shares of the Canadian vertically integrated tour operator."Average air fares are up 4.5% y/y so far for summer travel, not sufficient to offset higher jet fuel prices," James said in a note to clients."Competition appears to be limited Transit's ability to push fares significantly higher," the analyst said."Exposure to international leisure travellers (price sensitive), narrow margins and financial leverage, leave earnings highly sensitive to even small demand fluctuations."

Transat A.T. Q2 Net Loss Widens

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.

Transat Seals New Interline Partnership With Iberia in Spain

Transat AT (TRZ.TO) is expanding its footprint in Spain by striking a new interline partnership with Iberia, the company said on Thursday.Air Transat passengers can now connect via Madrid to more than 20 popular destinations including Palma de Mallorca, Ibiza, Tenerife and Alicante, a statement said.The airline now serves five Spanish destinations, including four operated year-round, Madrid, Barcelona, Malaga and Valencia."Spain is one of Air Transat's most important international markets, and we are proud to be the airline offering the widest range of Spanish destinations from Canada," said Sebastian Ponce, chief revenue officer at Transat. "This new partnership with Iberia builds on that leadership by giving our customers seamless access, via Madrid, to even more destinations across Spain."Transat shares were last seen down $0.06 to $2.50 on the Toronto Stock Exchange.Price: $2.50, Change: $-0.06, Percent Change: -2.34%

Air Transat Launches New Non-Stop Service Between Montreal and Istanbul

Air Transat, a business unit of Transat A.T (TRZ.TO), announced Friday the launch of a new non-stop route between Montreal (YUL) and Istanbul (IST), starting Oct. 29, 2026.Operated year-round on an Airbus A330, the service will run twice weekly, on Tuesdays and Thursdays, said the company.Combined with three weekly flights from Toronto, travellers from across Canada, from Halifax to Vancouver, including Ottawa, Quebec City, Winnipeg and Calgary, will now have access to up to five weekly flights to Istanbul, it added."Expanding our program from our hometown is great news for Quebecers and the local business community," said Sebastian Ponce, Chief Revenue Officer at Transat. "Through our partnership with Turkish Airlines, Istanbul becomes much more than a destination, it's a gateway to one of the most diverse global networks, spanning the Middle East, Asia, Africa and the Caucasus."Transat A.T shares were last seen down $0.01 at $2.62 on the Toronto Stock Exchange.Price: $2.62, Change: $-0.01, Percent Change: -0.38%

National Bank Notes Airlines Not Raising Atlantic Route Fares Enough to Cover Jet Fuel Price Hikes

The Canada to Europe route is one of the largest drivers of profitability in the peak summer period for Canadian airlines, notes National Bank.In an update to his March outlook, analyst Cameron Doerksen reports that, despite the fuel prices spike, capacity for summer 2026 (May 1 to October 31) has stayed relatively consistent since the beginning of March, with overall seats still expected to be up 5.2% y/y, unchanged since March.He notes that summer 2025, jet fuel spot averaged C$0.89/liter, but the summer average so far is C$1.45/liter (+63%) with the spot price currently at C$1.37/liter. Airlines will need to increase fares by about 15% to materially offset higher fuel cost, based on the current spot jet fuel price, he calculates.However, based on spot fare checks for several key Canada-Europe routes, as well as third-party observations from KAYAK, while fares are higher on some key routes, other busy routes show fare decreases. On the routes that do show higher fares, the increases are less than the ~15% Doerksen sees as necessary to fully offset higher fuel costs.The Atlantic market is the single largest summer market for Air Canada (AC.TO), representing ~35% of the airline's total passenger revenue in the second and third quarters last year. Air Canada has had some success in raising fares to offset higher fuel prices, but higher costs will still likely weigh on margins through the summer. With more exposure to premium travel than other Canadian carriers, Air Canada is arguably best positioned of all the Canadian carriers to raise fares to offset fuel, Doerksen says.Air Canada is rated sector perform with a price target of $22.00 on its shares.The summer period and the trans-Atlantic market specifically is the most important driver of profits for Transat, but as a leisure-focused carrier, raising fares to offset the fuel price spike may be tougher than for other large network carriers with greater premium customer exposure, Doerksen adds. He expects the higher fuel prices to weigh on profitability for Transat in the coming quarters. Transat is rated underperform with a price target of $2.25 on its shares.Price: $21.68, Change: $+0.42, Percent Change: +1.98%

National Bank Downgrades Transat to Underperform, Cuts Price Target to $2.25 on Higher Jet Fuel Costs

National Bank has downgraded Transat A.T (TRZ.TO) to underperform from sector perform, and trimmed its price target by $0.75, to $2.25, ahead of the company's second-quarter results.Analyst Cameron Doerksen says the downgrade is driven mainly by higher jet fuel costs, which will be a major profit headwind for Transat in the coming quarters. "Whereas the average spot price of jet fuel in Transat's H2/25 was C$0.89/liter, the average for summer so far is C$1.45/liter (+63% y/y)," he notes.While Transat has implemented fuel surcharges and other pricing actions, Doerksen expects that raising fares may be more challenging for a leisure-focused airline than for other large network carriers that have greater premium customer exposure.Furthermore, Transat's focus is on long-haul routes where a greater percentage of capacity has been sold in advance at prices that do not reflect the spike in jet fuel prices from late February, he adds.Price: $2.68, Change: $-0.04, Percent Change: -1.47%

Transat Lowered to Underperform From Sector Perform, Target Cut To C$2.25 From $3 at National Bk With Fuel Costs To Weigh In Coming Quarters

CIBC Say Aviation Week Data Indicates Business Aviation Utilization Tops Both Prior-Year and Pre-COVID Levels

CIBC Capital Markets on Tuesday said recent Aviation Week data indicates business aviation utilization remains above both prior-year and pre-COVID levels, even as activity increasingly diverges across operators within the fractional segment.At the aggregate level, the backdrop "remains constructive", said CIBC."For the Feb-Apr/26 period, Corporate, Fractional, Charter, and Private individual operator classes all exceeded their utilization levels from both 2025 and 2019," noted CIBC. "Corporate operators, the largest segment with fleets exceeding 21,600 aircraft, recorded just under 1MM flight hours over the three-month period, up 4% Y/Y and 33% above the same period in 2019."Fractional operators were stronger, with activity up 11% Y/Y and 93% above pre-COVID levels, stated CIBC. It noted that, within the category, however, performance is not uniform. NetJets and Flexjet both saw higher flight hours over the period, with NetJets up 11% Y/Y and Flexjet up 12% Y/Y, said CIBC and noted that, in contrast, VistaJet, Flyexclusive, and Wheels Up all reported lower activity, with VistaJet down 9%, Flyexclusive down 4%, and Wheels Up down 46%.According to CIBC, taken together, the data suggests that recent divergence is occurring within a market where overall utilization remains elevated. It further noted that, given that fractional utilization as a group is still growing (+11% Y/Y), gains at the largest operators are offsetting declines elsewhere within the same segment."There are also notable differences in fleet positioning across operators," said CIBC. "NetJets and Flexjet operate fleets across multiple cabin categories, while other operators are more concentrated in narrower segments of the market."CIBC noted, while the utilization data does not isolate fleet mix as a driver, the split highlights that activity is not evenly distributed across the operator base.For Bombardier Inc (BBD-B.TO), CIBC noted, the key takeaway is that the broader demand environment "remains intact". Utilization across both Corporate and Fractional segments continues to run above prior-year and pre-pandemic levels, supporting ongoing aircraft activity across core end markets."Overall, the data points to a market that remains active in aggregate, but where utilization trends are becoming increasingly uneven across operators," added CIBC.Price: $19.63, Change: $+0.85, Percent Change: +4.53%

National Bank on April Airfares

National Bank notes the air transportation component of Canadian CPI data for April edged down 1.7% after posting a 2.9% increase in March, the first irise since June 2024.April fares were down 3.6% from March.The decline is surprising, given Canadian airlines implemented fuel surcharges on most routes with Air Canada (AC.TO) reporting, despite the higher fares, demand has not declined, writes analyst Cameron Doerksen."However, we note that fuel surcharges have been more aggressive on international routes, and we believe the StatCan survey is more weighted to domestic routes which could partially explain why April data did not come in stronger," Doerksen adds.He expects fares for Air Canada and Transat A.T. (TRZ.TO) to be higher in the short term with Air Canada also noting at the time of its first-quarter results that it was booking forward yields in the mid-teen percentages y/y. However, the longer high fuel prices persist, the more risk there is that higher airfares will lead to some demand destruction, Doerksen says.Air Canada is rated sector perform with a $22.00 price target on its shares. Transat is also rated sector perform with a $3.00 price target on its shares.Price: $18.79, Change: $-0.39, Percent Change: -2.03%

Transat A.T Says Increase in Aviation Fuel Prices Continues to Exert "Significant" Pressure on Global Energy Markets

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.

Transat Providing Update On "Volatility" Of Aviation Fuel Prices

Transat Launches South Packages on Porter Flights; Shares up 4.6%

Transat A.T (TRZ.TO) and Porter Airlines are launching new Transat packages that combine Porter non-stop flights to Nassau, Grand Cayman, Cancun and Puerto Vallarta, with Transat's "recognized tour operator expertise," taking "another step forward" in their commercial partnership, the companies said on Monday.For some "popular destinations" served by both carriers, such as Cancun and Puerto Vallarta, packages will now feature expanded flight options operated by either Porter or Transat, said the companies.New packages will be available from Toronto, Ottawa and Hamilton for travel on or after Nov. 1, 2026, the companies added."These additions mark a significant enhancement to Transat's South destination portfolio," said Renee Boisvert, Vice-President, Tour Operator Products at Transat. "Through our partnership with Porter Airlines, we're expanding our reach with sought-after destinations like Nassau and George Town, while giving travellers more ways to build the trip that suits them best."The company's shares were last seen up $0.12 at $2.68 on the Toronto Stock Exchange.Price: $2.68, Change: $+0.12, Percent Change: +4.69%

Transat Adds Aruba, Barbados, Cabo to Winter 2026-27 Schedule From Montreal

Transat A.T (TRZ.TO) said Monday it is expanding its winter 2026-2027 schedule by adding three new sun destinations from Montreal.The new routes include Oranjestad in Aruba, Bridgetown in Barbados, and San Jose del Cabo in Mexico. Flights to San Jose del Cabo will begin on Dec. 10, with one flight per week. Service to Oranjestad will start on Dec. 12, with one weekly flight, while Bridgetown will have two flights per week starting Dec. 13, the company said."Demand for sun destinations remains strong, and these three new routes from Montreal allow us to meet that demand by expanding our offering. By adding Aruba, Barbados and Los Cabos, we are continuing to execute a strategy focused on diversifying and optimizing our network to the South, for the benefit of our clients," Chief Revenue Officer Sebastian Ponce said.These flights are now open for booking, though schedules may change depending on approvals and airport availability. Air Transat will continue to roll out more details about its full winter program in the coming weeks, the company added.Transat shares closed up $0.02 to $2.63 on the Toronto Stock Exchange.Price: $2.60, Change: $-0.01, Percent Change: -0.38%

CIBC Lowers Transat Price Target to $2.00, Keeps Underperform Rating

CIBC Capital Markets trimmed its price target on the shares of Transat A.T (TRZ.TO) by $0.20 to $2.00 and maintained its underperform rating after the air carrier reduced its May-October program due to fuel price volatility and regional supply constraints.The changes imply a ~6% reduction in planned available seat miles (ASMs), driven primarily by frequency adjustments on certain Europe and Caribbean routes, CIBC notes, adding that Transat has also extended its Cuba suspension to October."While TRZ does have a fuel hedging policy in place (with more than half of Q2/F26 fuel consumption currently hedged and some additional coverage extending into the summer period), this provides only partial near-term insulation given the magnitude of recent fuel price volatility."Transat's more limited ability to redeploy capacity to other markets given its network reach and greater exposure to price-sensitive leisure demand, may constrain fare recovery when compared with mainline carriers, CIBC adds.Price: $2.65, Change: $-0.03, Percent Change: -1.12%

Transat A.T Revises Its Program Amid Aviation Fuel Crisis

Transat A.T (TRZ.TO) on Wednesday said that it has revised its 2026 program, with targeted adjustments on certain routes, in response to the "unprecedented aviation fuel crisis and exceptional volatility in energy markets."The company said that these measures are intended to optimize deployed capacity by prioritizing routes with the strongest performance outlook, as part of the company's ongoing operational discipline.The changes implemented to date represent a 6% reduction in planned capacity from May to October 2026, said the company."Consistent with the rest of the airline industry, Transat has been facing significant fuel price volatility for several weeks, as well as supply constraints in certain regions, including Cuba," said the company and added that it has therefore adjusted its program by reducing the number of frequencies on some routes to Europe and the Caribbean and by extending the suspension of service to Cuba until October."The recent volatility in aviation fuel prices reflects an exceptional environment affecting the entire sector," said Annick Guerard, President and Chief Executive Officer. "We are closely monitoring the situation, as cost pressures continue to be felt across the industry. We will continue to optimize our program based on demand, which remains strong. Additional measures may be implemented depending on how the situation evolves, beyond our control."The company's shares were last seen down $0.01 at $2.84 on the Toronto Stock Exchange.Price: $2.82, Change: $-0.03, Percent Change: -1.05%

Transat Revising Its 2026 Program, With Targeted Adjustments On Certain Routes, Due To Aviation Fuel Crisis and Volatility In Energy Markets

Transat Revising Its 2026 Program, With Targeted Adjustments On Certain Routes, Due To Aviation Fuel Crisis and Volatility In Energy Markets

Transat Higher as Announces Four New Winter Routes

Air Transat (TRZ.TO), up near 3% on last look, on Friday began unveiling its 2026-2027 winter program, announcing four new routes.The airline will fly from Quebec City to San Jose, Toronto to Fort-de-France, London to Puerto Plata, and Charlottetown to Punta Cana. Air Transat is also expanding the Toronto to Paris and Montreal to Barcelona routes to year-round service, a statement said.Air Transat will also resume service to Fort Lauderdale, Florida in winter 2026-2027, offering up to seven weekly flights from Montreal, and three weekly flights from Quebec City and a weekly flight from Halifax.The company will release additional announcements in the coming weeks to complete the 2026-2027 winter program.Transat shares were last seen up $0.08 to $2.96 on the Toronto Stock Exchange.Price: $2.97, Change: $+0.09, Percent Change: +3.13%