Mr. Andrean Gagne reports

TRANSAT REACHED A NEW SUPPORT AGREEMENT FOR GTF ENGINES

Transat AT Inc. has reached a new support agreement with the equipment manufacturer of GTF engines, this time covering the two calendar-year periods of 2025 and 2026.

The support package includes compensation to address the direct costs associated with the aircraft that are grounded and those anticipated to be grounded, and is similar in structure to the previous agreement reached with the equipment manufacturer of GTF engines covering 2023 and 2024, with the compensation provided in the form of credits to be applied to the manufacturer's products and services, including the purchase of two additional spare engines.

Transat intends to evaluate opportunities to monetize these new spare engines, including through a sale and leaseback or other financial transactions.

On Sept. 10, 2024, Transat had agreed to a support agreement including financial compensation from the manufacturer for the costs related to grounded aircraft in 2023 and 2024.

About Transat AT Inc.

Founded in Montreal 37 years ago, Transat has achieved worldwide recognition as a provider of leisure travel particularly as an airline under the Air Transat brand. Voted World's Best Leisure Airline by passengers at the 2024 Skytrax World Airline Awards, it flies to international destinations. It renews its fleet with the most energy-efficient aircraft in its category, which is essential to ensure the energy efficiency of its operations. Based in Montreal, Transat has 5,000 employees with a common purpose to bring people closer together.