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

Transat A.T. (TSE:TRZ) released its earnings results on Tuesday. The company reported C($1.18) earnings per share for the quarter, FiscalAI reports. Transat A.T. had a negative return on equity of 29.12% and a net margin of 7.12%.The company had revenue of C$870.71 million during the quarter.

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

• Transat delivered a stronger Q1 with revenues up 5% to CAD 871 million, adjusted EBITDA up 68% to CAD 34 million, and a materially narrower net loss (CAD 29M vs CAD 122M a year earlier).
• Liquidity and cash generation improved significantly — cash and equivalents CAD 387 million (CAD 528M including trusts), free cash flow CAD 247 million, and a net cash position of CAD 12M after debt repayments.
• Operational disruption from Pratt & Whitney GTF engine issues left 4 aircraft grounded in Q1 (expected to decline to 3 by summer) with full resolution not expected until late 2027/early 2028, creating ongoing inefficiencies.
• Flights to Cuba were suspended through April 30 due to destination fuel shortages — Cuba was roughly 10% of winter capacity — which will negatively affect Q2 results despite partial redeployment to other Sun markets.
• Management reiterated progress on the Elevation Program (about CAD 70M of the CAD 100M target embedded) and unveiled a co‑branded loyalty program with Desjardins/Visa (H2 2026) expected to drive recurring revenue, improved yields and market‑share gains.

Transat A.T. Stock Performance

TSE:TRZ opened at C$2.35 on Thursday. The firm has a market capitalization of C$95.32 million, a PE ratio of 0.41, a PEG ratio of -0.04 and a beta of 0.74. Transat A.T. has a 1 year low of C$1.41 and a 1 year high of C$3.25. The company has a current ratio of 0.70, a quick ratio of 0.76 and a debt-to-equity ratio of -241.24. The firm’s fifty day simple moving average is C$2.62 and its 200 day simple moving average is C$2.54.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. Desjardins boosted their price objective on Transat A.T. from C$3.00 to C$3.30 and gave the company a “hold” rating in a research report on Tuesday, December 23rd. TD Securities cut Transat A.T. from a “buy” rating to a “hold” rating and decreased their target price for the company from C$5.00 to C$3.00 in a research note on Wednesday, February 11th. Three investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Transat A.T. currently has an average rating of “Reduce” and an average target price of C$2.83.

About Transat A.T.

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.