Air Transat Q3 2026: Fuel Costs Drive EBITDA into Negative

Air Transat reported a third-quarter 2026 financial performance marked by a sharp decline in profitability, driven primarily by soaring fuel costs and fleet disruptions. Revenues increased by 3.4% year-over-year to $793 million, yet adjusted EBITDA fell into negative territory at $1 million, a $82 million drop from the $81 million positive figure in Q3 2025. Net loss widened to $107 million, after excluding a $345 million one-time debt gain in the prior year’s results, while adjusted net loss expanded to $90 million from $12 million. Free cash flow turned negative at $302 million, compared with $122 million in the same period a year earlier, and cash reserves declined to $243 million at quarter-end from $390 million at the end of Q2 2026. Total net debt rose to $1,513 million, reflecting increased long-term debt and deferred government grants totaling $448 million.