Transat sees $105M in additional jet fuel costs in third quarter
MONTREAL — The parent company of Air Transat says it paid $105 million in additional jet fuel costs in the third quarter compared with a year ago due to higher prices.
Air Transat, the parent company of Air Transat, disclosed on Wednesday that it incurred an additional $105 million in jet fuel costs in the third quarter compared to the same period last year, primarily due to rising fuel prices. Since the Strait of Hormuz was closed earlier this year, Transat A.T. Inc. has paid a cumulative $175 million in extra fuel expenses as of the end of Q3.
Industry forecasts suggest that energy market volatility will persist, potentially continuing to strain jet fuel costs in the near and medium term. The company has acknowledged that it has limited capacity to pass these increased costs onto its customers. Transat is currently engaged in discussions with the federal government to explore possible solutions to mitigate the impact of soaring jet fuel prices.
In a separate development last month, the airline secured a financing agreement with the Canadian government, securing a loan of up to $150 million to help offset the elevated costs associated with jet fuel, exacerbated by the ongoing U.S.-Israeli conflict with Iran.
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