07:52 AM EDT, 06/12/2025 (MT Newswires) -- Transat A.T ( TRZBF ) on Thursday said second-quarter net loss narrowed significantly, beating estimates, as revenue edged up.

The net loss narrowed to $22.9 million, or $0.58 per share, from a loss of $54.4 million, or $1.40 per share, in the prior year period. The result beat the consensus analyst estimate of a loss of $0.89, according to FactSet.

Revenue rose 5.9% to $1.03 billion, above the $1.01 billion forecast. The increase was due to a 2% hike in airline unit revenues and a 1.6% increase in traffic. Transat also received compensation of $20 million from Pratt & Whitney for the GTF2 engines. Last September, Transat agreed to a support agreement including financial compensation from Pratt & Whitney related to grounded aircraft in 2023 and 2024. Transat has also reached a new compensation agreement for the 2025 and 2026 fiscal years, a statement said.

The company said it is making progress through its Elevation Program and the initiatives implemented so far are expected to generate an annualized adjusted EBITDA run-rate of $67 million. Transat remains on track to reach its goal of $100 million. The company expects to benefit from cost-saving and revenue-generating initiatives from the second half of this year.

"Despite persistent economic uncertainty, Transat is methodically executing its business strategy through disciplined fleet optimization and network expansion. Recent additions of new routes and changes to our program have further strengthened our leadership in providing leisure travel services to Canadian consumers," said Annick Guerard, chief executive officer.