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Air Transat
- IATA/ICAO Code:
- TS/TSC
- Airline Type:
- Full Service Carrier
- Year Founded:
- 1986
- CEO:
- Annick Guérard
- Country:
- Canada
- Hub(s):
- Montréal–Trudeau International Airport
- Region:
- North America
Canada’s Air Transat has secured a final loan of CAD150 million ($117 million) from the Canada Enterprise Emergency Funding Corporation (CEEFC). The COVID-19 support loan will be the last in a series of loans aimed at protecting jobs in the country’s aviation industry throughout the pandemic.
The funding for the Montreal-based carrier was secured by its parent company, Transat AT, and comes as part of the Large Employer Emergency Financing Facility (LEEFF) COVID scheme, following an application that was filed by the airline at the peak of the Omicron wave.
As a result of Canada’s strong recovery from the pandemic, no further LEEFF loan applications are being accepted, with the CEEFC stating,
"The CEEFC has stopped accepting new LEEFF applications, reflecting Canada's strong economic recovery from the pandemic and the fact that no new applications for securing LEEFF loans have been received from Canadian companies, except for Transat, over the last year.”
Previous funding from the LEEFF
This will be the third time that Air Transat has received LEEFF funding. In April 2021, the airline was granted financing of CAD700 million ($545 million), and in March 2022 it was granted a further CAD43 million ($33 million). The carrier managed to negotiate favorable 20-month deferrals for certain key terms of the loans.
The airline’s president and chief executive officer, Annick Guérard, commented,
"This complementary financing and the changes to the existing agreements strengthen our treasury position and reinforce our financial resilience. This important financing milestone, combined with sales that have been doing well in recent months, will give us the financial flexibility to deploy our strategic plan with optimism and confidence."
Air Transat’s recovery
Air Transat’s recovery from the pandemic was blighted by the Omicron wave, which hit during the peak Canadian winter travel season. The airline then reported a Q2 2022 net loss of $111.6 million, largely due to rising fuel prices. It is, however, confident that it can push through this latest crisis and return to profitability and has recently implemented a fuel-hedging program and has increased ticket prices.
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The airline is continuing to restore its pre-pandemic network, and is also launching a series of new routes, such as Montreal to Los Angeles, and Quebec City to London Gatwick. Air Transat is also taking further deliveries of fuel-efficient Airbus A321LRs, with the 11th and 12th aircraft due to arrive in Q3.
About Air Transat
Founded in 1986, Air Transat today is Canada’s third-largest airline, behind Air Canada and WestJet. The carrier boasts a fleet of 29 aircraft – 17 Airbus A321s and 12 Airbus A330s, in addition to a further seven A321LRs on order. Air Transat operates primarily leisure routes to Europe, the US, Central America, and Mexico.
What do you think of Air Transat’s latest COVID-19 loan agreement? Will it be enough for the airline to recover from the pandemic amid rising fuel prices? Share your thoughts by commenting below.