Transat AT Inc Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Konark Gupta - Scotiabank GBM - Analyst : Thanks, operator, good morning, everyone. On the yield side, first, I guess, you guys pointed out that the quarter-to-date yield is tracking 3% above from last year. And I think you also mentioned that there's a downward trend you are seeing in that number lately. Can you help us understand; a -- was the yield in the early part of this quarter, fiscal Q4, was it higher than 3% and that started to kind of taper down? And did you see any benefits from the Air Canada labor disruption that happened in August?

Question: Konark Gupta - Scotiabank GBM - Analyst : Okay. That's really helpful. Thanks for the color. And then in terms of your planning the upcoming winter, I think you guys are expecting 5% to 7% growth in capacity. I understand a lot of that could be driven by the aircraft that's ungrounding after two years or so. But do you -- like, do you see the demand being enough to support that capacity? Or I mean, do you plan to launch new routes as you said, where you expect to stimulate the market demand?

Question: Konark Gupta - Scotiabank GBM - Analyst : Okay. thanks. And last one before I turn over. On the Elevation program, so congrats on achieving the full benefits. And I think, hopefully, you're expecting some or most of them to show up as we go ahead in the next few quarters. My question on the Elevation now is, I mean, over the last year or so you have clearly made a lot of efforts to realize this CAD100 million saving. Any changes like on the positive side or negative side you have seen as you hopped on those initiatives, whether from supply chain or, I don't know, from macro or even like any new opportunities that surfaced, do you see the CAD100 million as a good firm number? Or do you need to adjust that number as we go forward from here?

Question: Konark Gupta - Scotiabank GBM - Analyst : Okay. Perfect. Thanks for the time. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2025 / 2:00PM, TRZ.TO - Q3 2025 Transat AT Inc Earnings Call

Question: Kevin Chiang - CIBC World Markets Corp - Analyst : Hi, good morning. Thanks for taking my question. Maybe just following on some of the questions Konark have asked. I guess if I think of the 5% to 7% capacity growth next year, is there a way to break that down between how much of that is like from haul driven? It sounds like reduced grounding of some of these aircraft will provide that opportunity versus how much of that 5% to 7% is just increased capacity into existing markets? I'm just trying to get a sense of if the length of haul is a bigger contributor to that 5% to 7% growth?

Question: Kevin Chiang - CIBC World Markets Corp - Analyst : Okay. That's helpful. And just maybe on the competitive environment, it sounds like some of the increased competition you've seen in the transatlantic market in -- maybe in the recent months reflects increased competition from European carriers, it sounds like European lower cost carriers. Just wondering as you look into the winter season, are you seeing a similar competitive dynamic emerge where Southern carriers may be looking to take advantage of the shift in Canadian travel dynamics here as Canadians travel more towards Sun and -- more towards Sun destination markets outside of the US? Just wondering if you're seeing something similar in the winter season as you saw in the summer season here from some of your foreign competitors?

Question: Kevin Chiang - CIBC World Markets Corp - Analyst : Okay. That's helpful. Maybe just a last one for me. Again, congratulations on getting through the Elevation program. It felt like a lot of the Elevation program was focused on improving the optimization of your organizational structure, so a lot of cost initiatives. I guess what's next after here? I guess I've always thought that you've had an opportunity from a revenue perspective, whether it's improving your yield management, whether it's -- maybe looking at loyalty programs. Just wondering, as you've completed Elevation, is there an opportunity here to maybe address some of the lower-hanging fruit from a revenue management perspective? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2025 / 2:00PM, TRZ.TO - Q3 2025 Transat AT Inc Earnings Call

Question: Kevin Chiang - CIBC World Markets Corp - Analyst : Perfect. I'll leave it there. Thank you.

Question: Cameron Doerksen - National Bank Financial Research - Analyst : Yeah, thanks. Good morning. I wonder if you can talk a little bit about what you're seeing from a consumer behavior point of view. It's one of the things you've kind of highlighted here is some, I guess, shifts in consumer behavior and I guess the maybe some consumer concerns around the economic backdrop. I mean what can you kind of point to that gives you, I guess, maybe a little bit of concern about the ability for the consumer to continue to travel?

Question: Cameron Doerksen - National Bank Financial Research - Analyst : Okay. That's helpful. Second question, I guess, on your relationship with Porter. Just wondering if you can update how that's kind of progressed through the summer and I guess the fee traffic that they provided to you. But I also wanted to ask, I guess, a bit about some of the new routes they've announced back in June to Sun destinations, some of which look like they may overlap with traditional Transat markets to the Sun. So I'm just wondering how -- I guess, how you kind of work with them to avoid competing with each other?

Question: Cameron Doerksen - National Bank Financial Research - Analyst : Okay. No, that's helpful. So you're basically working in conjunction with them to, I guess, offer the best schedule that you can between the two airlines?

Question: Cameron Doerksen - National Bank Financial Research - Analyst : Okay. Perfect. That was all my questions. Thanks very much.

Question: Benoit Poirier - Desjardins Securities Inc - Analyst : Yeah. thanks very much. Good morning, Annick and good morning, Jean Francois. Just to come back on Porter, really nice to hear that you're being able to grow. Any impact from the sharp decrease we saw between Canada and the US travel or they've been successful to replace the capacity elsewhere?

Question: Benoit Poirier - Desjardins Securities Inc - Analyst : Okay. That's great. And just talking about partnership, Annick, you've announced a nice partnership with Turkish Airlines back in June. So I think it will start from Toronto to Istanbul in December 2025 on a weekly basis twice. So could you maybe provide more granularity about the expectation? How sizable could be the partnership for you down the road?

Question: Benoit Poirier - Desjardins Securities Inc - Analyst : Okay. Okay. And could you also maybe provide an update on the potential you see at the Saint-Pierre airport with Porter? And also if you could give an update on the loyalty program rollout, that would be great? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2025 / 2:00PM, TRZ.TO - Q3 2025 Transat AT Inc Earnings Call