Air Transat’s parent company is absorbing fuel losses even heavier than it first disclosed.
Transat A.T. Inc. said higher jet fuel prices added roughly $105 million in costs during Q3 compared with the same period in 2025, pushing the financial burden since the closure of the Strait of Hormuz to about $175 million by quarter’s end.
“Higher jet fuel prices resulted in approximately $105 million in additional costs during the third quarter compared with the same period in 2025,” the Montreal-based company said in a statement issued Friday. “Since the prolonged closure of the Strait of Hormuz, the estimated cumulative impact of these higher fuel prices on the corporation’s costs has reached approximately $175 million at the end of the third quarter.”
The company said it has had little ability to offset the hit at the ticket counter. “The Corporation’s ability to pass higher fuel costs on to customers has, to date, remained very limited,” it said, even as it works to protect margins heading into the fall and winter booking season.
Transat isn’t alone in bracing for a rough stretch. “According to recent industry assessments, including those by the International Air Transport Association (IATA), volatility in energy markets is expected to continue putting pressure on jet fuel costs across the industry in both the short and medium term,” the company said.
That warning tracks with IATA’s own outlook: the association has forecast global jet fuel prices averaging around $152 a barrel this year, nearly 70 per cent above 2025 levels, and has cut its 2026 industry-wide profit forecast nearly in half, to $23 billion from an earlier $41 billion.
The disclosure adds to a costly year for Transat. The carrier absorbed a $70-million fuel hit in March and April alone, posted a $79-million second-quarter loss in June it blamed largely on fuel, and trimmed flight schedules this spring.
Officials said Transat “is actively engaged with the federal government to explore potential solutions.” In July, Transat finalized a financing agreement under Ottawa’s new Liquidity for Airline Sector Resilience (LASR) program worth up to $150 million, with an initial $125 million disbursed immediately. The loan carries a four-year term at 3.91% annual interest, and the final size of the credit facility will be determined by how much is needed to offset higher aviation fuel costs through 31OCT, 2026, compared with the same period last year.
