- Transat AT Inc. (TSX:TRZ), Air Transat’s operator, is considering laying off up to 80 employees as it grapples with financial challenges
- According to a preliminary notice sent to the Québec government, the well-known Canadian tour operator has faced numerous obstacles over the past year, including intense competition, engine recalls, and the looming threat of a union strike. These factors have collectively strained the company’s financial resources
- In its fiscal Q3 2024 financial update, the company reported a net loss of C$39.9 million, versus net income of C$57.3 million last year
- Transat AT Inc. stock opened trading at C$1.73
Transat AT Inc. (TSX:TRZ), Air Transat’s operator, is considering laying off up to 80 employees as it grapples with financial challenges.
This development was first reported by the Canadian Press and comes as the company struggles to stabilize its finances.
According to a preliminary notice sent to the Québec government, the well-known Canadian tour operator has faced numerous obstacles over the past year, including intense competition, engine recalls, and the looming threat of a union strike. These factors have collectively strained the company’s financial resources.
Under Québec labour regulations, companies are required to submit potential layoff figures for provincially regulated jobs, even if the layoffs do not ultimately occur. In compliance with these rules, Air Transat has notified the province’s employment department that the layoffs could take effect by Nov. 1. The company clarified in an email that these potential layoffs would not impact pilots, flight attendants, or other federally regulated roles.
Andrean Gagne, a spokesperson for Air Transat, emphasized that the notification of potential layoffs is a “precautionary measure” to adhere to provincial regulations.
The financial strain on Air Transat is evident in its recent financial reports. In its fiscal Q3 2024 financial update, the company reported a net loss of C$39.9 million, versus net income of C$57.3 million last year.
Transat AT Inc. is a travel brand whose program offers access to international destinations, mainly in Europe, the Caribbean, the East and West coasts of the United States, South America and North Africa.
Transat AT Inc. stock (TSX:TRZ) opened trading more than 2 per cent lower at C$1.73 per share. Since the year began, TRZ stock has fallen 53.89 per cent.
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(Top image: Transat AT Inc.)
