- IATA/ICAO code:
- Airline type:
- Full service carrier
- Year of foundation:
- Annick Guerard
Canadian company Air Transat has secured a final loan of C$150 million ($117 million) from the Canada Business Emergency Financing Corporation (CEEFC). The COVID-19 support loan will be the latest in a series of loans aimed at protecting jobs in the country’s aviation industry throughout the pandemic.
The Montreal-based carrier’s funding was secured by its parent company, Transat AT, and is part of the Large Employer Emergency Funding Facility (LEEFF) COVID program, following a application filed by the airline at the height of the Omicron. vague.
The loan is expected to help support Air Transat as it continues its recovery from the pandemic. Photo: Vincenzo Pace | single flight
Due to Canada’s strong recovery from the pandemic, no further LEEFF loan applications are being accepted, with CEEFC stating,
“CEEFC has stopped accepting new LEEFF applications, reflecting Canada’s strong economic recovery from the pandemic and the fact that no new applications for LEEFF loans have been received from Canadian businesses, except of Transat over the past year.”
Previous LEEFF funding
This will be the third time Air Transat has received LEEFF funding. In April 2021, the airline secured C$700 million ($545 million) in funding and in March 2022 it secured an additional C$43 million ($33 million) in funding. The carrier was successful in negotiating favorable 20-month deferrals for some key loan terms.
The airline’s President and CEO, Annick Guérard, commented,
“This additional funding and changes to existing agreements strengthen our cash position and strengthen our financial resilience. This significant funding milestone, combined with sales that have performed well over the past few months, will give us the financial flexibility to deploy our strategic plan with optimism and confidence.”
This year, the carrier has launched a series of new routes, including from Quebec City to London Gatwick. Photo: London Gatwick Airport
Takeover of Air Transat
Air Transat’s post-pandemic recovery was marred by the Omicron wave, which hit during Canada’s peak winter travel season. The airline then reported a net loss of $111.6 million in the second quarter of 2022, largely due to rising fuel prices. He is however confident that he can weather this latest crisis and return to profitability and has recently implemented a fuel hedging program and increased ticket prices.
The airline is continuing to restore its pre-pandemic network and is also launching a series of new routes, such as Montreal to Los Angeles and Quebec to London Gatwick. Air Transat is also taking new deliveries of fuel-efficient Airbus A321LRs, with the 11th and 12th aircraft expected to arrive in the third quarter.
Air Transat currently has 10 fuel-efficient Airbus A321LRs in its fleet and is awaiting delivery of seven more. Photo: Air Transat
About Air Transat
Founded in 1986, Air Transat is today the third largest airline in Canada, behind Air Canada and WestJet. The carrier has a fleet of 29 aircraft – 17 Airbus A321s and 12 Airbus A330s, with another seven A321LRs on order. Air Transat mainly operates leisure routes to Europe, the United States, Central America and Mexico.
What do you think of Air Transat’s latest COVID-19 loan deal? Will it be enough for the airline to recover from the pandemic amid rising fuel prices? Share your thoughts by commenting below.