May 27th, 2024

Transat says it expects to fall short of financial guidance for 2024

By The Canadian Press on May 10, 2024.

Travel company Transat A.T. Inc. says it expects to fall short of its financial guidance for the year. An Air Transat sign is seen in Montreal on May 31, 2016. THE CANADIAN PRESS/Paul Chiasson

MONTREAL – Travel company Transat A.T. Inc. says it expects to fall short of its financial guidance for the year.

The Montreal-based company says it will likely not achieve its adjusted earnings before interest, taxes, depreciation and amortization margin forecast for its 2024 financial year.

The parent company of Air Transat says operational challenges related to Pratt & Whitney’s GTF1 engines, market dynamics and the consequences of union strike threats have created a volatile environment.

Transat says the current trend puts it on track to achieve an adjusted EBITDA margin of about five per cent for its 2024 financial year.

In March, Transat had said it expected its adjusted EBITDA margin for the full year to be at the lower end of a range of 7.5 to 9.0 per cent.

The company says it will provide an update about its performance and strategies when it reports its second-quarter results on June 6.

This report by The Canadian Press was first published May 10, 2024.

Companies in this story: (TSX:TRZ)

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