The air carrier Transat AT announced on Friday that it will “likely not” be able to achieve its forecasts for adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the 2024 financial year.
In a press release, the Montreal company explained that operational issues linked to Pratt & Whitney’s GTF1 engines, downward pressure on prices, as well as the consequences of union strike threats create a “particularly volatile” environment. .
“Thus, although the situation may further evolve over the coming months, maintaining the current trend would place the company on a trajectory to achieve an adjusted EBITDA margin of approximately 5% for fiscal 2024,” it said. the company.
When unveiling its first quarter results in March, Transat said it expected an adjusted EBITDA margin for fiscal 2024 to be at the lower end of the range of 7.5% to 9.0% announced in last December.
Due to the evolving situation, the company will no longer issue an outlook on this measure in the future.
It plans to provide more information on its performance and strategies when it unveils its second quarter results on June 6.
At the end of April, Transat flight dispatchers voted 100% in favor of a strike mandate.
This strike vote came just a few months after the threat of a flight attendant strike ate into Transat’s profitability during the holidays and in January.
In the first quarter, the carrier reported negative adjusted EBITDA of $8.6 million, as well as a net loss of $61 million.
However, its revenues reached $785.5 million, up 17.7% compared to $667.5 million for the corresponding period of the previous fiscal year.