Overview

* Canadian tour operator Transat's fiscal Q3 revenue rises 4.1% yr/yr, beating analyst expectations

* Adjusted EBITDA for fiscal Q3 increases, driven by higher revenues and lower fuel costs

* Co reports net income of C$399.8 mln, aided by debt restructuring

Outlook

* Company expects 1.0% increase in capacity for fiscal 2025

* Transat anticipates $100 mln adjusted EBITDA by mid-2026

* Company faces short-term challenges with load factors

* Transat maintains focus on cost management and network expansion

Result Drivers

* REVENUE GROWTH - Revenue increased by 4.1% driven by a 2.6% improvement in yield and a 1.0% increase in passenger traffic, according to CEO Annick Guérard

* ELEVATION PROGRAM - Initiatives from the Elevation Program are on track to deliver $100 mln in adjusted EBITDA by mid-2026, contributing to improved results

* COST CONTROL - Rigorous control of operating expenses and favorable fuel costs led to improved operating profitability, according to CEO Annick Guérard

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat C$766.30 C$760.50

Revenue mln mln (4

Analysts

)

Q3 Net C$399.80

Income mln

Q3 C$81.20

Adjusted mln

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the leisure & recreation peer group is "buy."

* Wall Street's median 12-month price target for Transat AT Inc ( TRZBF ) is C$3.00, about 7.3% below its September 10 closing price of C$3.22

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)