Transat A.T. Inc. says it will likely not achieve its forecasted financial results for the year.
The Montreal-based company on 10MAY said persistent operational challenges related to Pratt & Whitney's GTF engines, downward pressure on airline revenues and the threat of union strikes have forced it reduce its forecasted EBITDA margin to 5% for fiscal 2024.
Back in March, Transat had forecast an EBITDA (earnings before interest, taxes, depreciation and amortization) of 7.5 to 9%.
“Given these factors, the Corporation has deemed it prudent to no longer issue guidance on this metric in the future,” Transat said. “The Corporation will provide further information about its performance and strategies during the second quarter earnings call on June 6th.”
