Canada's airlines Part 4: Air Transat regains financial footing as long-haul competition intensifies

Air Transat parent Transat ended 2013 on a high note, posting profits after two years of losses. Its return to profitability is partially driven by new concessionary agreements reached with Air Transat employees, fleet changes and other cost cutting schemes that should contribute to cumulative savings of CAD75 million (USD68 million) by 2015.

The favourable financial performance places Transat on solid ground for an unpredictable scenario in the busy trans-Atlantic market during summer 2014, when Air Canada's low-cost carrier rouge reaches full force, and introduces a fair amount of capacity between Canada and Europe. For the moment Air Transat appears to be taking a wait-and-see approach with respect to how the trans-Atlantic market unfolds, and is not publicly displaying any trepidation over the increased competition.