Many travelers are concerned about the financial strength of Canada’s only remaining ultra low-cost carrier, Flair Airlines. Yet, another airline that’s even more popular and big has just announced a net loss of 114 million dollars for its fiscal year 2024 — meaning a 6th consecutive year of losses.
This airline’s last year of net profit was in 2018. But no one seems to mind booking a ticket with this airline, which once again shows the double standard many apply to ultra low-cost carriers (ULCCs).
Here are the details.
Air Transat lost 114 million dollars in 2024
Quebec-based airline Air Transat unveiled its financial results for 2024 this week, with a net loss of 114 million dollars on total revenues of 3.3 billion dollars.
This is not particularly abnormal or dramatic; the aviation industry is quite difficult in Canada, with regulations that are more numerous and fees/taxes that are higher than in almost any other developed country.
If, unlike me, you don’t have an MBA or management consulting experience, financial results like that may seem scary.
But above all, the point really is that many often talk about Flair Airlines, which could also definitely do better financially — as a new player, it’s even harder for them (Transat has been around since 1986 and it’s still tough, so imagine). But no one seems to be talking about Air Transat (even most legacy media outlets)…
In short, Lynx Air’s failure earlier this year traumatized many people, but it’s not just Flair that’s going through tough times. The commercial aviation industry is extremely cyclical, and competition between players is fierce. The pandemic government’s extremist response to the pandemic was rough.
Air Transat, even while being one of the country’s most beloved airlines, has still reported net losses every year for the past 6 years.
Their last fiscal year with net profits was 2018, and it was an extremely low profit: just 6 million dollars on revenues of 2.8 billion (0.2% net margin).
(Starting in January, Transat will be the only major Canadian airline not to charge for carry-ons for short-distance flights… but this approach of not being able to offer lower prices might not the best!)
After 6 years of losses… does this mean you shouldn’t book with Air Transat? Probably not, just as you probably shouldn’t avoid Flair.
Especially since Flair often has incredibly low prices. I was looking for my return from Miami recently and saw Flair flights at $26 ($37) one-way, which is pretty amazing.
With my $24 accommodation that I’ve shown in my stories for those who follow me on Instagram, that makes for a cheap trip. I’ll talk about it again soon, just like this Flair initiative with really cheap flights.
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Summary
Air Transat, a beloved airline that has been around for almost 40 years, has just announced a net loss of 114 million dollars for 2024. While Flair Airlines and other ultra low-cost carriers have been criticized for their recent poor financial performance, we can see from this example that the commercial aviation industry can be really tough, even when you’re a well-established company that is not an ultra l0w-cost carrier at all.
What would you like to know about Air Transat’s 114-million-dollar loss for 2024? Tell us in the comments below.
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Featured image: Flight attendant and Air Transat customer (photo credit: Air Transat)
