Transat Confirms Approximately $105 Million in Additional Jet Fuel Costs in its Third Quarter

Transat Confirms Approximately $105 Million in Additional Jet Fuel Costs in its Third Quarter

MONTREAL, Aug. 21, 2026 /CNW/ -- Transat A.T. Inc. (TSX: TRZ) ("Transat" or the "Corporation") today provided an update on the ongoing impact of higher jet fuel prices on its costs.

Higher jet fuel prices resulted in approximately $105 million in additional costs during the third quarter compared with the same period in 2025. 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.

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 Corporation's ability to pass higher fuel costs on to customers has, to date, remained very limited. The Company is actively engaged with the federal government to explore potential solutions in this regard.

Caution Regarding Forward-Looking Statements

This press release contains certain forward-looking statements regarding the Corporation, including statements relating to its results, financial position and future outlook. Forward-looking statements are identified by the use of words and expressions such as "expect," "anticipate," "plan," "believe," "estimate," "intend," "target," "project" and "forecast," as well as the negative forms of these terms and other similar expressions, including references to assumptions. All such statements are made pursuant to applicable Canadian securities legislation. These statements may include, without limitation, comments regarding strategies, expectations, planned activities or future actions, including financing solutions being considered by the Corporation and management's going-concern assumption.

Forward-looking statements are, by their nature, subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Forward-looking statements may differ materially from actual results for a variety of reasons, including, without limitation, economic conditions; changes in demand due to the seasonality of operations; extreme weather conditions; climate-related or geological disasters; war; political instability; actual, planned or potential measures by governments regarding the imposition of tariffs on exports and imports; actual or perceived terrorism; outbreaks of epidemics or diseases; consumer preferences and spending habits; consumer perceptions regarding destination safety and air travel safety; demographic trends; disruptions to air traffic control systems; the cost of security, safety and environmental measures; competition; the Corporation's ability to maintain and enhance its reputation and brand; the future availability of financing to the Corporation, including debt refinancing; the Corporation's ability to repay its debt through internally generated funds or otherwise; the Corporation's ability to adequately mitigate issues related to Pratt & Whitney GTF engines; fluctuations in fuel prices, foreign exchange rates and interest rates; the Corporation's dependence on key suppliers; the availability of aircraft and fluctuations in related costs; information technology and telecommunications; cybersecurity risks; changes in legislation, regulatory developments or proceedings; ongoing litigation and claims brought by third parties; the Corporation's ability to reduce operating costs, including through initiatives under its Elevation program; the Corporation's ability to attract and retain qualified employees; labour relations, collective bargaining negotiations and labour disputes; pension matters; the maintenance of insurance coverage at favourable levels and on favourable terms and at an acceptable cost; and other risks described in detail in the Risk and Uncertainties section of the Management Discussion and Analysis in our 2025 Annual Report, filed on SEDAR+ at www.sedarplus.ca.

Readers are cautioned that the foregoing list of factors is not exhaustive and are urged to carefully consider these and other factors and not to place undue reliance on forward-looking statements. The forward-looking statements contained in this press release are based on a number of assumptions regarding economic and market conditions, including assumptions relating to the volatility of jet fuel prices, as well as the Corporation's business activities, financial condition and operations. Examples of forward-looking statements include, without limitation, statements regarding the evolution of higher jet fuel prices and the prolonged closure of the Strait of Hormuz, the impact of the situation on the Corporation's costs and results, and the availability and feasibility of measures to fully mitigate its impacts.

The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.

About Transat

Founded in Montreal in 1987, Transat has achieved worldwide recognition as a provider of leisure travel particularly as an airline under the Air Transat brand. Voted World's Best Leisure Airline by passengers at the 2025 Skytrax World Airline Awards, it flies to international destinations. Air Transat's fleet includes some of the most energy-efficient aircraft in their category. Based in Montreal, Transat has over 5,000 employees with a common purpose to bring people closer together. (TSX: TRZ) www.transat.com

For more information

Media: Hugo D'Amours, Vice-President, Communications and Corporate Responsibility, hugo.damours@transat.com, 514 987-1616, ext. 101110

Financial analysts: Juliette Gauthier, Senior Director, Investor Relations and Corporate Finance, juliette.gauthier@transat.com, 514 987-1616, ext. 104019

SOURCE Transat A.T. Inc.