The Canadian company Air Transat reported a net loss of 106.6 million dollars for its third fiscal quarter —the period ending July 31, 2026— impacted by the rising cost of aviation fuel and the indefinite suspension of its flights to Cuba.
The cancellation of flights to Cuban airports cost Air Transat 35 million dollars just in that quarter. The results, published on Thursday by the parent company Transat AT, contrast with the profit of 399.8 million recorded in the same period of 2025, and indicate a loss of 2.60 dollars per share compared to earnings of 9.97 dollars per share from the previous year.
The main trigger was the increase in the price of aviation kerosene, which rose by 56% year-on-year and caused an additional 105 million dollars in costs during the quarter.
«The results for the third quarter were significantly impacted by the sustained rise in fuel prices, which remained well above our forecasts and represented the main factor behind the decline in our profitability,» explained Annick Guérard, President and CEO of Transat AT.
He added that, despite the growth in revenue resulting from increased operational capacity, "the competitive conditions of the market limited our ability to pass on the rising fuel costs to customers," which reduced both occupancy rates and unit revenue per passenger.
The company estimates that the cumulative impact of the fuel crisis — triggered by the conflict in Iran that began in February 2026 — has already reached about 175 million dollars.
The collapse of the Cuban market
Air Transat suspended all its flights to Cuba in February 2026 after the airports on the island ran out of Jet A-1 fuel. In June, it extended that suspension indefinitely along with Air Canada and WestJet.
In the nine months accumulated of the fiscal year, the absence of the Cuban market has resulted in a loss of 116 million dollars in the airline's revenues.
The collapse of Canadian tourism in Cuba has been devastating. Between January and April of 2026, only 125,444 tourists arrived on the island from Canada, compared to 346,109 during the same period in 2025, a contraction of 63.8%.
In total, Cuba received only 419,863 visitors between January and July 2026, a 63% year-on-year decline. The Caribbean country has 73% of its hotels closed.
To maintain its liquidity, the Canadian federal government announced on Thursday a new loan of 250 million dollars through the Canada Emergency Business Financing Corporation, which is in addition to another 150 million provided by the same organization in June.
Guérard thanked for the support and noted that the assistance "provides additional liquidity and financial flexibility to address this challenging situation."
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