10:33 AM EDT, 09/12/2024 (MT Newswires) -- Transat's third quarter results were below forecast, notes National Bank.

Analyst Cameron Doerksen, who has an initial negative take on the result, is maintaining the Underperform rating and $2.25 target on Transat shares as he reviews his forecast and valuation. Transat had previously cautioned that summer yields were below last year. The third quarter results were a little worse than the outlook provided with the second quarter report.

"With Q4 looking similarly soft and the upcoming winter likely to be pressured by increased competitive capacity and some softening consumer demand, we are not optimistic that financial results will improve significantly in the coming quarters (although jet fuel prices are down materially in recent weeks, which should help the bottom line)," Doerksen writes.

National is also waiting on a comprehensive refinancing plan which, as has been highlighted previously, has the potential for shareholder dilution.

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