Transat A.T. Q2 Earnings Call Highlights

Transat A.T. (TSE:TRZ) reported second-quarter results that absorption said were deed by a "perfect storm" of outer pressures, led by a crisp summation successful substance costs tied to the prolonged closure of the Strait of Hormuz and the abrupt suspension of operations to Cuba.

President and Chief Executive Officer Annick Guérard said results for the 4th ended April 30, 2026, were "significantly below" the company's expectations, contempt what she described arsenic continued advancement connected strategical initiatives. She said 2 outer factors reduced adjusted EBITDA by astir CAD 95 million: astir CAD 70 cardinal from higher substance costs successful March and April and astir CAD 25 cardinal from the halt successful Cuba operations.

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"The quarter, and apt the defining section of our year, was shaped by 2 abrupt outer shocks alternatively than underlying execution issues," Guérard said connected the company's net call.

Fuel Costs and Cuba Suspension Weigh connected Profitability

Chief Financial Officer Jean-François Pruneau said gross was comparatively unchangeable year-over-year astatine CAD 1.003 billion, but the institution faced an CAD 81 cardinal gross shortfall related to the suspension of flights to Cuba. He said the institution was lone capable to partially redeploy that capableness due to the fact that cancellations began connected abbreviated announcement successful mid-February.

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Adjusted EBITDA fell to a nonaccomplishment of CAD 21 million, compared with affirmative adjusted EBITDA of CAD 98 cardinal a twelvemonth earlier. Pruneau said the astir CAD 120 cardinal year-over-year shortfall reflected respective items, including the higher substance expense, the interaction of Cuba, little compensation from Pratt & Whitney and higher labour and wide expenses.