Transat Secures Up to C$150 Million Under Canadian Airline Liquidity Program

Transat has secured financing of up to C$150 million under the Canadian government’s Liquidity for Airline Sector Resilience (LASR) Facility to help offset the impact of sharply higher aviation fuel prices.

The amount available under the facility will be based on the additional fuel costs incurred through October 31, 2026, compared with the same period in 2025. An initial C$125 million was disbursed upon closing, with any remaining funds to be drawn in monthly tranches. The four-year loan carries an annual interest rate of 3.91%.

The Montreal-based carrier said the financing is intended to strengthen liquidity as the airline industry continues to face elevated fuel costs. Transat first announced its intention to participate in the LASR program when it released its second-quarter 2026 financial results in June.

The financing was approved by Transat’s board following the recommendation of a special committee of independent directors. The company said the agreement qualifies for exemptions under Canadian related-party transaction rules because it was negotiated on commercially reasonable terms and does not alter the Canadian Enterprise Emergency Funding Corporation’s existing ownership position in the airline.