07:56 AM EDT, 09/11/2025 (MT Newswires) -- Transat A.T ( TRZBF ) , a provider of leisure travel particularly as an airline under the Air Transat brand, on Thursday reported third-quarter adjusted net loss narrowed as revenues came in better than expected, but it warned on load factors, and airline unit revenues and capacity in the fourth quarter

Adjusted net loss, which excludes most one-time items, decreased to $11.8 million, or $0.28 per share, from $36.3 million, or $0.93 per share, last year.

Net income of $399.8 million, or $9.97 per share, including $345.1 million from long-term debt restructuring, compared to a net loss of $39.9 million, or $1.03 per share, last year

Revenue increased 4.1% to $766.3 million, above the $760 million consensus forecast at FactSet. Transast said he increase was mainly due to a 2.6% increase in airline unit revenues and a 1% increase in traffic expressed in revenue-passenger-miles (RPM) compared with 2024. Transat also recorded $7 million that was financial compensation from the manufacturer of GFT engines as revenue.

Reflecting disciplined management, the Corporation's capacity was up 2.4% from the corresponding period last year, while capacity for transatlantic routes, the main program during this period, increased by 4.2%.

In looking ahead, Transat said that to date, load factors for the fourth quarter, are 1.2 percentage points lower compared to the same date last year, while airline unit revenues, expressed as yield, are 3.1% higher, but currently trending downward.

For fiscal 2025, the company expects a 1% increase in capacity, measured in available seat-miles, compared with 2024, reflecting a modest reduction in capacity during the fourth quarter.

"Looking ahead, economic uncertainty and capacity redeployment across the industry are posing short-term challenges for load factors, and we do not expect fuel costs to provide the same significant tailwind as they did so far this year," said Annick Guerard, chief executive officer.

"In this context, we are maintaining our focus on executing our business strategy through disciplined cost management, fleet optimization and network expansion. As for the upcoming winter season, we are excited with our broader offering. With new destinations in South America and Turkiye, along with the extension of transatlantic services, we are pursuing our diversification strategy to offer more leisure travel options."

Transat closed down $0.03, to $3.22, on the Toronto Stock Exchange.