Air Transat Parent Warns of Layoffs Amid Financial Struggles

Transat A.T. Inc., the parent company of Canadian airline Air Transat, is facing financial challenges and has warned of potential layoffs affecting 80 employees. Despite this, the company assured that airline operations will remain unaffected. According to spokesperson Andréan Gagné, the layoffs are precautionary and limited to provincially regulated employees, not impacting Air Transat staff, who fall under federal jurisdiction. This potential reduction represents about 1% of the company’s workforce of over 5,000 employees, reproted ch-aviation.com.

The layoffs are in compliance with Quebec labour regulations, which require companies to notify authorities of potential redundancies, even if they do not come to pass. Transat A.T. emphasized that the possible layoffs, which could occur by November 1, will not affect pilots, cabin crew, or other employees governed by federal regulations.

Transat A.T. has faced significant hurdles in 2024, including engine issues with its Airbus A321neo fleet due to Pratt & Whitney malfunctions, strike threats, and heightened competition in a weak economy. The company reported a CAD54 million (USD40 million) loss for the second quarter of 2024, an increase from CAD29.1 million (USD21.5 million) in the same period last year. While revenue grew by 12% year-on-year to CAD973 million (USD719 million), operating costs surged by 16%, reaching CAD988 million (USD730 million).

Air Transat operates a fleet that includes 19 Airbus A321-200NX(LR)s, 8 A321-200s, 14 A330-200s, and 2 A330-300s. The airline also has four A321-200NY(XLR)s on order from Airbus, but delivery may be delayed until 2026 due to production bottlenecks.

Transat A.T. continues to navigate financial headwinds as it seeks stability in a challenging economic landscape.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com