Air Transat Braces for A321neo Groundings in 2024 Due to Engine Inspections

Air Transat, operating from Montréal Trudeau, anticipates grounding up to a third of its Airbus A321-200NX(LR) fleet by the end of fiscal year 2024. This forecast, detailed in a December 14, 2023, investor presentation by its parent company Transat AT, arises from required inspections of Pratt & Whitney’s PW1100G engines.

The airline currently has three A321-200NX(LR) aircraft affected by these mandated checks, with projections suggesting this number could increase to five or six by FY24’s end. In response, Air Transat is considering various strategies, such as extending existing leases, exploring additional short-term lease options, and enhancing fleet optimization to mitigate the impact of these groundings.

The investor presentation acknowledged the potential for operational disruptions, noting that the engine inspection issue is not unique to Air Transat but affects all carriers using the same engine model. Transat AT’s CEO, Annick Guerard, emphasized the ongoing collaboration with Pratt & Whitney, including discussions on future financial compensation, during an earnings call.

The affected A321-200NX(LR) aircraft currently grounded include C-GOIE (msn 8755), C-GOIH (msn 9198), and C-GOIR (msn 10866). The airline still operates twelve active A321-200NX(LR)s and anticipates receiving four more Airbus long-range narrowbodies between April and June 2024. According to ch-aviation fleets advanced data, these include two A321-200NX(LR)s and three A321-200NY(XLR)s. Air Transat’s fleet also comprises eight A321-200s, two A330-300s, and eleven A330-200s. Guerard mentioned the possibility of deploying A330 aircraft on routes typically served by the A321neo during this downtime.

Financially, Air Transat reported a modest profit of CAD 3.2 million (USD 2.4 million) on revenues of CAD 765 million (USD 572 million) for the quarter ending October 31, 2023. However, the airline experienced a loss of CAD 25.3 million (USD 18.87 million) over the 12-month period ending the same date, with total revenues of CAD 3 billion (USD 2.25 billion). Despite the challenges posed by the Pratt & Whitney engine inspections, the investor presentation highlighted promising prospects for 2024, including a joint venture with Porter Airlines, capacity expansion plans, and increased operational efficiencies.