Air Transat voted North America’s Best Leisure Airline at the 2022 Skytrax World Airline Awards

Montreal, September 26, 2022 – Air Transat is pleased to announce that it has won the title of North America’s Best Leisure Airline at the 2022 Skytrax World Airline Awards.

“We are honoured to earn this award, which comes despite the many challenges faced by all industry players in recent months,” said Annick Guérard, President and Chief Executive Officer, Transat. She added: “Our enduring commitment to our passengers is to provide them with unparalleled experiences when they travel with us, and this award is proof that we continue to deliver on this promise. We also want to acknowledge the dedication and professionalism of our teams, without whom none of this would be possible.”

For his part, Edward Plaisted, Chief Executive Officer at Skytrax, stated: “We congratulate Air Transat on being voted by travellers as the Best Leisure Airline in North America. This is a fantastic success for Air Transat, not only in terms of delivering an enjoyable customer experience but doing this in what has been the most challenging of times for many airlines as the world emerges from the pandemic.”

The Air Transat experience

The carrier serves nearly 60 destinations on three continents with a new-generation fleet made up of the greenest aircraft in its category, the Airbus A321LR. Air Transat also recently announced the forthcoming delivery of four Airbus A321XLRs, another milestone in its fleet renewal and simplification. Through its many air and land transportation partnerships, the carrier strives to continually expand its offering of destinations and broaden travellers’ horizons.

Air Transat will also continue to stand apart with its warm and friendly experience at every step of the customer journey, from the booking process to the return home, with features like its exclusive Club Class, which combines comfort and personalized service, its very inviting  Economy Class, its Kids Club created especially for globetrotters aged 2 to 11, and, finally, its Option Plus upgrade for travellers seeking an enhanced travel experience.

About the World Airline Awards

The World Airline Awards are wholly independent and impartial, introduced in 1999 to provide a customer satisfaction study that was truly global. Travellers across the world vote in the largest airline passenger satisfaction survey to determine the award winners. The awards are referred to by media around the world as the “Oscars of the aviation industry.” All costs of the survey and awards event are paid by Skytrax, and airlines do not pay any entry or registration fee. There are no charges for use of the award logos and results. The online customer survey ran from September 2021 to August 2022, together with invitations sent to previous-year respondents in the survey database. The customer survey is provided in English, French, Spanish, Russian, Japanese and Chinese. Over 100 customer nationalities participated in the 2021-2022 survey, with 14.32 million eligible entries counted in the results. Survey entries are screened to identify IP and user information, with all duplicate, suspect or ineligible entries deleted. More than 300 airlines are featured in the final award results.

About Air Transat

Founded in Montreal 35 years ago, Air Transat is a leading leisure travel brand. Voted World’s and North America’s Best Leisure Airline by passengers at the Skytrax World Airline Awards, it flies to international, transborder and Canadian destinations, striving to serve its customers with enthusiasm and friendliness at every stage of their trip or stay, and emphasizing safety throughout. It is renewing its fleet with the greenest aircraft in their category as part of a commitment to a healthier environment, knowing that this is essential to its operations and the magnificent destinations it offers. Air Transat is a business unit of Transat A.T. Inc. (TSX: TRZ). To find out more, visit airtransat.com.

Recent distinctions and awards

  • Best Leisure Airline for the 12th consecutive year at the Agents’ Choice Awards presented by Baxter Travel Media
  • World’s Best Leisure Airline at the Skytrax World Airline Awards (2017, 2018, 2019 and 2021)
  • North America’s Best Leisure Airline at the Skytrax World Airline Awards (2020 and 2022)
  • Named to Forbes World’s Best Employers list

Another discount airline takes off — but they may not all survive

Web News • 24 September 2022

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Air Lease Corporation Announces Lease Placement of Four New Airbus A321XLR Aircraft with Air Transat

LOS ANGELES, California, September 8, 2022 – Today Air Lease Corporation (NYSE: AL) announced long-term lease placements for four new Airbus A321XLR aircraft with Air Transat (Canada).  Three new aircraft are confirmed to deliver to the airline starting at the end of 2025 through 2026 from ALC’s order book with Airbus. The agreement also includes an option for one additional A321XLR aircraft to be delivered in 2027. 

“ALC is pleased to announce this lease placement for four new A321XLRs with Air Transat and be the first to introduce the XLR to the Canadian airline,” said Steven Udvar-Házy, Executive Chairman of Air Lease Corporation.  “The A321XLR will bring new levels of comfort and excellent service to Air Transat’s passengers, while providing significant enhancements to the airline’s operational efficiency.”

“Air Transat’s new leasing agreement with our long-trusted partner ALC represents another key milestone in the renewal and simplification of our fleet undertaken since 2017.  Along with A321LRs, XLRs figure as a cornerstone of Transat’s 2022-2026 strategic plan.  These aircraft can improve the quality of our transatlantic program by increasing the number of frequencies per week with the same capacity, representing a more attractive offer for our customers.  Adding these three new XLRs to our fleet – with a fourth optional one – will allow us greater operational flexibility as this type of aircraft is very well suited to our needs across our programs annually,” stated Annick Guérard, President and Chief Executive Officer of Transat.

About Air Lease Corporation (NYSE: AL)

Air Lease Corporation is a leading global aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. ALC and its team of dedicated and experienced professionals are principally engaged in purchasing new commercial aircraft and leasing them to its airline customers worldwide through customized aircraft leasing and financing solutions. The company routinely posts information that may be important to investors in the “Investors” section of its website at http://www.airleasecorp.com. Investors and potential investors are encouraged to consult Air Lease Corporation’s website regularly for important information. The information contained on, or that may be accessed through, ALC’s website is not incorporated by reference into, and is not a part of, this press release.

About Air Transat

Founded in Montreal 35 years ago, Air Transat is a leading leisure travel brand.  Voted World’s Best Leisure Airline by passengers at the Skytrax World Airline Awards, it flies to international, transborder and Canadian destinations, striving to serve its customers with enthusiasm and friendliness at every stage of their trip or stay, and emphasizing safety throughout.  It is renewing its fleet with the greenest aircraft in their category as part of a commitment to a healthier environment, knowing that this is essential to its operations and the magnificent destinations it offers.  Air Transat is a business unit of Transat A.T. Inc. (TSX: TRZ). To find out more, visit airtransat.com.

Transat A.T. Inc. – Results for third quarter of 2022

Confirmed return of bookings to pre-pandemic levels
Order of four A321XLRs

For the third quarter:

  • Revenues of $508.3 million
  • Adjusted operating loss1 of $57.8 million (operating loss of $93.2 million)
  • Adjusted net loss1 of $120.9 million (net loss of $106.5 million)

Financial position:

  • Unrestricted liquity1 of $511.3 million as at July 31
  • The Corporation obtained an additional amount of $100.0 million under LEEFF
  • Customer deposits of $585.6 million, representing 96% of pre-pandemic levels and a 19% increase over last quarter, reflecting the recovery in demand

Continuation of the strategic plan:

  • The Corporation took delivery of two A321LR
  • Signing of an agreement to deliver four A321XLR aircraft (three firm orders and one option)

MONTRÉAL, Sept. 8, 2022 /CNW Telbec/ – Transat A.T. inc., a holiday travel reference worldwide, particularly as an air carrier under the Air Transat brand, announces its results for the third quarter ended July 31, 2022.

“The recovery emerging at the end of the last quarter has been confirmed in recent months. With our prudent planning and our teams’ exceptionally high quality execution, we were able to deploy virtually all of our programs, with continuously improving load factors,” stated Annick Guérard, President and Chief Executive Officer of Transat.

“We are on track for a winter season that promises to match pre-pandemic levels. The pace of sales is currently very comparable to 2019. Although the quarterly results are still affected by the costs of resuming operations, July was our first profitable month in more than two years, setting the stage for improved results. The strong pricing this quarter also partially absorbed the increase in fuel costs, the adverse effect of which is likely to persist for some time.”

“Our current cash position, combined with new financing obtained during the quarter, gives us the required flexibility for the future. We also continued to implement our strategic plan during the quarter, particularly with respect to the fleet, with the receipt of two new A321LRs and the order of four A321XLRs. These new aircraft will bring us all the advantages of the LR, including cost and environmental benefits, with an even longer range”, concluded Ms. Guérard.

Third quarter highlights

Compared with 2021 (a quarter with virtually no operations), the Corporation’s revenues increased by $495.8 million for the quarter ended July 31, 2022. Compared with 2019, quarterly revenues were down  $190.6 million or 27%. Capacity offered was 82% of that deployed in 2019 across all programs and 68% for Europe, the main program during this period. Overall, the number of travellers was down 24% for the third quarter compared with 2019. The gradual recovery of demand combined with higher fuel prices also contributed to the increase in average selling prices compared with 2019. The increase in average selling prices is approximately 8% for the Europe program and 26% for the sun destinations program.

Operations resulted in an operating loss of $93.2 million, an improvement of $5.2 million compared with the $98.4 million loss in 2021. The improvement was reined in by a 112% surge in fuel prices (or $103.3 million) during the quarter, compared with 2021. Transat reported an adjusted operating loss1 of $57.8 million, a deterioration of $6.9 million, compared with $50.9 million in 2021.

Net loss attributable to shareholders amounted to $106.5 million (or $2.82 per diluted share) compared with $138.1 million (or $3.66 per diluted share) for the corresponding quarter of last year. The net loss attributable to shareholders in 2022 was reduced by a $14.5 million gain on the revaluation of the liability related to warrants, partially offset by the $6.9 million loss related to the change in the fair value of fuel-related derivatives and other derivatives. The net loss attributable to shareholders in 2021 was increased by the $15.9 million foreign exchange loss, primarily attributable to the exchange effect on lease liabilities related to aircraft and the $9.4 million loss on the revaluation of the liability related to warrants. Excluding non-operating items, Transat reported an adjusted net loss1 of $120.9 million ($3.20 per diluted share) for the third quarter of 2022, compared with $115.6 million ($3.06 per diluted share) in 2021.

Financial position

As at July 31, 2022, cash and cash equivalents amounted to $411.3 million, compared with $429.4 million as at the same date in 2021. In total, the available financing amounted to a maximum of $963.3 million, of which $863.2 million was drawn down, for unrestricted liquidity1 of $511.3 million.

Customer deposits for future travel stood at $585.6 million, representing 96% of pre-pandemic levels (as at July 31, 2019) and up 19% from the last quarter, reflecting the recovery in demand.

Continued rebuilding of fleet

The Corporation took delivery of two A321LRs during the quarter and is expecting five more aircraft of this type in 2023 and 2024. In recent days, Transat also finalized its first order since 2018, for four A321XLRs, including three firm orders for delivery in 2025-2026 and an option for 2027. These aircraft have an even longer range than the A321LR and will eventually allow the Corporation to complete its fleet and serve more faraway destinations with an aircraft that has the same advantages as the LR, namely cost per passenger, reduced carbon footprint and exceptional on-board experience.

Agreement on asset-backed commercial paper (ABCP)

On August 23, 2022, the Corporation and the Canada Revenue Agency (“CRA”) came to an agreement concerning the tax treatment of ABCP-related tax losses. Under this agreement, the Corporation is expected to receive $11.8 million, of which $9.5 million had already been recognized. In addition, the Corporation could receive accrued interest in connection with this settlement agreement. The Corporation could also receive $6.0 million from provincial tax authorities, of which $4.9 million had already been recognized.

Outlook

Fourth quarter 2022 – The current situation is showing very encouraging signs in terms of bookings as the last-minute booking trend persists. After the low reached during the Omicron wave, load factors have largely improved in recent months. Selling prices of bookings for the summer season have been steadily increasing since the start of spring across all our programs.

Across all our markets, the planned capacity for summer 2022 represents 92% of the 2019 capacity. For the transatlantic program, the Corporation’s main market for the summer season, the planned capacity in 2022 is 81% of the 2019 level. In the sun destinations program, the Corporation’s planned capacity is slightly higher than in 2019. Lastly, the Corporation tripled its capacity in the transborder market and deployed a slightly higher capacity for its domestic program, compared with 2019.

Fuel prices, if they remain at the current level, are creating strong pressure on the Corporation’s operating costs and profitability.

It remains difficult at this time to forecast the evolution of the health and economic situations or their impact on bookings and future financial results with sufficient precision for the Corporation to present a more comprehensive outlook for the fourth quarter of 2022.

Winter 2023 – In the sun destinations program, the Corporation’s main program for the period, Transat’s capacity is the same as that deployed in 2019 and 75% higher compared with 2022. To date, and overall, the load factors are comparable to 2019 levels while prices are higher.

The Corporation believes it is still too early to draw any conclusions regarding winter season results.

About Transat

Founded in Montreal 35 years ago, Transat has achieved worldwide recognition as a provider of holiday travel particularly as an airline under the Air Transat brand. Voted World’s Best Leisure Airline by passengers at the Skytrax World Airline Awards 4 times since 2017, it flies to international and Canadian destinations, striving to serve its customers with enthusiasm and friendliness at every stage of their trip or stay, and emphasizing safety throughout. Transat has been Travelife-certified since 2018, renewing its fleet with the greenest aircraft in their category as part of a commitment to a healthier environment, knowing that this is essential to its operations and the magnificent destinations it serves (TSX: TRZ). www.transat.com

AJW Group expands PBH contract with Air Transat

15 Aug 2022

AJW Group is pleased to announce the signing of a new Power-by-the-Hour (PBH) support contract with Canadian airline, Air Transat.

The support contract will see the business use its industry-leading expertise to manage the complete supply, repair, overhaul, and warranty of major components for the operator’s expanding fleet of Airbus A321 NEO and CEO aircraft at Air Transat’s primary base of operations in Montreal, Quebec, as well as from bases in Toronto and Vancouver.

Voted as the ‘World’s Best Leisure Airline’ by passengers at the Skytrax World Airline Awards in 2021, Air Transat has recently renewed its fleet with A321NEO aircraft – the greenest aircraft in their category – as part of a commitment to a healthier environment, and are included in the support contract.

AJW Group has supported Air Transat with PBH service contracts for nearly 10 years, originally for their Airbus A330 fleet. The signing of this contract is a testament to the overall quality, support, and customer service delivered by the Group. Today’s announcement reinforces AJW’s position as the market leader for end-to-end supply chain solutions for the A320 family of aircraft. 

AJW Group expands PBH contract with Air Transat

Mario Lafrance, Vice President, Technical Operations of Air Transat comments:

“We are pleased to have renewed our power-by-the-hour agreement with AJW Group for our fleet of A321 CEO and our new A321 NEO aircraft. We have worked with the Group for many years and are confident that our maintenance needs are always supported with knowledge and experience so we can focus on dispatch reliability and excellent customer experience.”

Sajedah Rustom, CEO of AJW Technique, comments:   

“We are proud that AJW has signed the power-by-the-hour contract with Air Transat. This is a testament to our strong partnership and commitment to excellence in the Canadian and global supply chain. The partnership cements AJW’s position as market leader on the A320 CEO and NEO family with world-class, in-house maintenance support coming from AJW Technique, our flagship MRO operation in Montreal.”

Transat secures $100 million in additional funding

Maturity dates for debts totalling $198 million are deferred from April 2023 to April 2024

MONTRÉAL, July 29, 2022 /CNW Telbec/ – Transat A.T. Inc. (“Transat” or the “Corporation“) announced today that it has reached an agreement with Canada Enterprise Emergency Funding Corporation (“CEEFC”), a federal Crown corporation, to obtain $100 million in additional liquidity. In connection with the establishment of such additional funding, through the Large Employer Emergency Financing Facility (LEEFF), Transat has reached an agreement with all lenders to defer the April 2023 maturities to April 2024, as well as to defer from October 2022 to October 2023 the date by which the Corporation must meet certain financial covenants.

Such liquidity is in addition to initial financing secured on April 29, 2021, through LEEFF to help the Corporation overcome the effects of the pandemic. On March 10, 2022, Transat also received an additional $43.3 million for traveller refunds and negotiated favourable 20-month deferrals for certain key terms of the unsecured LEEFF financing agreement.

As stated by Annick Guérard, President and CEO, “This complementary financing and the changes to the existing agreements strengthen our treasury position and reinforce our financial resilience. This important financing milestone, combined with sales that have been doing well in recent months, will give us the financial flexibility to deploy our strategic plan with optimism and confidence.”

The additional credit facility made available by the Canada Enterprise Emergency Funding Corporation, which Transat will use as needed over the next few months, is for an amount of $100 million of which 80% is under the terms and conditions of the non-revolving and unsecured credit facility amended this past March, and 20% is under the terms and conditions of the revolving and secured credit facility.

Under the LEEFF financing, Transat issued a total of 4,687,500 warrants for the purchase of an equivalent number of Transat shares at an exercise price of $3.20 per share over a 10-year period1. The warrants are to vest in proportion to the drawings that will be made, but 50% of vested warrants will be forfeited if the loan were to be repaid in full by December 31, 2023.

The financial arrangement also provides Transat with an additional credit facility for a maximum amount of $50 million, subject to certain conditions that must be met no later than July 29, 2023, including securing additional funding from a third party. This demonstrates the Crown corporation’s renewed commitment to Transat in the implementation of its recovery plan.

About Transat

Founded in Montréal 35 years ago, Transat has grown to become a travel reference worldwide, particularly as an air carrier under the Air Transat brand. Voted four times since 2017 as the World’s Best Leisure Airline by passengers at the Skytrax World Airline Awards, it flies to international and Canadian destinations and strives to provide its customers with service that is enthusiastic, friendly and entirely safe. Transat has been Travelife-certified since 2018. As part of its commitment to a healthier environment, it has been renewing its fleet with aircraft considered the greenest in their category, knowing that this is essential to the integrity of its operations and the destinations it serves (TSX: TRZ).

www.transat.com