Transat A.T. (TSE:TRZ) Announces Quarterly Earnings Results

Transat A.T. (TSE:TRZ) issued its quarterly earnings results on Thursday. The company reported C($2.58) earnings per share for the quarter, FiscalAI reports. Transat A.T. had a negative return on equity of 44.87% and a net margin of 9.74%.The business had revenue of C$1.03 billion during the quarter.

Here are the key takeaways from Transat A.T.’s conference call:

• Transat said Q2 results were significantly below expectations, with adjusted EBITDA of negative CAD 21 million versus positive CAD 98 million a year ago, as external shocks hit profitability.
• Management estimated that higher fuel costs from the Strait of Hormuz disruption hurt Q2 by about CAD 70 million, while the sudden suspension of Cuba operations reduced results by another CAD 25 million.
• Revenue was relatively stable at CAD 1.003 billion, supported by 3.9% traffic growth, but load factor slipped to 83.8% and yield declined 0.7% as pricing power weakened.
• The company continued to face GTF engine issues, with five aircraft grounded at quarter-end and full resolution not expected until early 2028, creating ongoing operational inefficiencies.
• Transat said it will apply to Canada’s LASER liquidity facility, which could provide up to CAD 150 million of support, while it also reduced net debt and ended Q2 with a net cash position of CAD 70 million.

Transat A.T. Price Performance

Shares of TSE TRZ opened at C$2.41 on Friday. The stock has a market capitalization of C$98.24 million, a price-to-earnings ratio of 0.30, a PEG ratio of -0.04 and a beta of 1.55. Transat A.T. has a 12 month low of C$2.11 and a 12 month high of C$3.25. The firm’s 50 day simple moving average is C$2.64 and its 200-day simple moving average is C$2.58. The company has a debt-to-equity ratio of -216.74, a current ratio of 0.71 and a quick ratio of 0.76.

Analysts Set New Price Targets

Separately, National Bank Financial downgraded shares of Transat A.T. from a “sector perform” rating to an “underperform” rating and cut their price target for the stock from C$3.00 to C$2.25 in a report on Wednesday, May 27th. Two research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, Transat A.T. presently has a consensus rating of “Strong Sell” and an average price target of C$2.68.

Transat A.T. Company Profile

Air Transat is a leading travel brand voted 2025 World’s Best Leisure Airline by passengers at the Skytrax World Airline Awards. Its program offers access to international destinations, mainly in Europe, the Caribbean, the east coast of the United States, South America and North Africa. Air Transat is recognized for its excellent customer service. Its fleet includes some of the most energy-efficient aircraft in their category. Based in Montreal with major hubs in YUL Montréal-Trudeau International Airport and Toronto Pearson Airport (YYZ), it has 5,000 employees with a common purpose to bring people closer together.