- Transat A.T. (TSX:TRZ) reported Q1 2026 financial results marked by a robust 68 per cent increase in adjusted EBITDA year-over-year
- The award-winning leisure travel provider, founded in Montreal in 1987, employs nearly 5,000 people
- Transat stock has added 52.91 per cent year-over-year
Transat A.T. (TSX:TRZ) reported Q1 2026 financial results marked by a robust 68 per cent increase in adjusted EBITDA year-over-year. Here are the highlights:
- Revenue of C$870.7 million, up by 5 per cent from C$829.5 million YoY, driven by a 2.2 per cent increase in traffic and a 1.4 per cent increase in airline unit revenues.
- Adjusted EBITDA of C$33.6 million, up from C$20 million YoY, reflecting cost-control initiatives under the company’s ongoing Elevation program, which seeks to add C$100 million in adjusted EBITDA from Q3 2024 to mid-2026.
- Net loss of C$29.5 million (C$0.73 per share), down significantly from a loss of C$122.5 million (C$3.10 per share) YoY.
- Free cash flow of C$246.6 million, up from C$129.1 million YoY, thanks to favourable changes in working capital balances and higher profitability.
- Cash and cash equivalents of C$386.7 million as of January 31, 2026.
- Long-term debt and deferred government grant of C$375 million, down from C$813.4 million YoY, driven by strong operating cash flow, which allowed the company to reimburse C$25 million on its revolving credit facility and make a C$30 million repayment on its working capital facility in early February.
According to Tuesday’s news release, leadership expects 2026 capacity to increase by 5-7 per cent YoY, supported by a new loyalty program slated to launch in the second half of the year in partnership with Visa Canada and Desjardins Group.
The news follows a profitable 2025, which saw Transat generate C$241 million in net income from C$3.4 billion in revenue, supported by debt refinancing, cost management, as well as new, high-potential routes.
Management commentary
“Transat delivered solid financial results in the first quarter of 2026, reflecting continued momentum from the diligent execution of its profitable growth strategy. Key initiatives implemented in the last several quarters, including our Elevation Program, diversification of network routes and airline partnerships, produced 5 per cent revenue growth and a strong 68 per cent YoY increase in adjusted EBITDA. In terms of operating metrics, we are equally pleased with our performance, highlighted by traffic growth of 2.2 per cent and a fifth consecutive quarter of yield improvement. Overall, our achievements demonstrate that Transat is moving in the right direction in laying the foundation for long-term shareholder value creation,” Annick Guérard, president and chief executive officer of Transat, said in a statement.
“Following the end of the quarter, we temporarily suspended all flights to Cuba until April 30 due to an anticipated fuel shortage at destination airports and organized repatriation flights to Canada to ensure the safety and well–being of our customers. Importantly, we redeployed a portion of the affected capacity through our South network, where we have seen an influx in demand. We will continue to monitor the situation closely to determine when flights to Cuba can safely resume,” added Guérard.
About Transat A.T.
Transat, founded in Montreal in 1987, is an award-winning leisure travel provider. The company was voted World’s Best Leisure Airline by passengers at the 2025 Skytrax World Airline Awards.
Transat stock (TSX:TRZ) is up by 7.79 per cent on the news trading at C$2.63 as of 9:35 am ET. The stock has added 52.91 per cent year-over-year.
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