GTF issues impact ongoing expansion for Transat

Despite reporting revenues of $785.5 million for the first quarter of 2024, ongoing supply chain shortages and GTF engine problems hindered Transat’s performance, with future expansion set to be curbed by the industry-wide issues. Although revenues for the quarter grew 17.7% year-over-year, reflecting a ‘sustained demand for leisure travel,’ operating challenges arising from GTF problems – including those relating to the temporary leasing of additional profitability – “applied pressure on profitability,” explained Annick Guérard, president and chief executive officer of Transat. He added that “while demand remains sound, softer yields indicate heightened consumer price sensitivity in the current macro-economic environment