Despite losing nearly $40 million in its third quarter ending July 31, Transat AT CEO Annick Guérard says the company is moving away from its disruptions earlier in the year with flight attendants labour negotiations, and that next year will be more “stable” than 2024.

Such stability, “in terms of fleet movements and operation… will definitely have a positive effect on cost and customer satisfaction as well,” she added.

The quarterly loss compared with a profit of $57.3 million a year earlier. At the same time, revenue totalled $736.2 million, down from $746.3 million in the same quarter last year.

The company attributed reduced revenues to lower airline unit revenues, competition, industry-wide overcapacity and economic uncertainty.

Air Transat is also among the airlines facing challenges related to the recall of Pratt & Whitney turbofan jet engines for inspection and repair.

The recall has so far grounded six aircraft, Guérard said.

“We have agreed to financial compensation for grounded aircraft during the 2023-2024 period,” she said. “Alongside this financial compensation, Pratt & Whitney will provide us with two additional spare engines, which we intend to monetize through a sell and lease back transaction.”

Looking ahead, the CEO said she expects consumer demand to remain somewhat uncertain amid high interest rates.

“We are currently seeing ongoing pricing pressure extending into the winter season,” she added, adding that Air Transat is not planning on adding additional aircraft next year but anticipates stability.