The halt of flights to Cuba has cost Air Transat a substantial CAD 25 million in just one quarter, highlighting the widespread impact of the island's energy crisis. This setback not only affects the Cuban populace but also international companies that have long relied on Cuba's tourism sector.
The Canadian airline reported a staggering net loss of CAD 79 million for the second quarter of 2026, more than tripling the CAD 23 million loss from the same period the previous year, according to a report by The Canadian Press following the company's financial results announcement.
Transat AT's CEO, Annick Guérard, attributed these financial struggles chiefly to rising fuel costs and the indefinite suspension of operations to Cuba.
"Our second-quarter results fell significantly below our expectations, as factors beyond our control severely impacted our profitability," Guérard stated during a conference call with analysts.
The company revealed that both the fuel price surge and the flight suspension to Cuba collectively impacted their adjusted earnings by CAD 95 million. The fuel cost increase accounted for about CAD 70 million, while the cessation of flights to Cuba resulted in an additional CAD 25 million in losses.
Air Transat ceased its operations to the island in mid-February after Cuban authorities warned of their inability to ensure a supply of Jet A-1 fuel at Havana's José Martí International Airport.
Significant Impact on Canadian Tourism
This decision disrupted one of the airline's key routes. Cuba comprised approximately 9% of Air Transat's flights during the first half of 2025 and remained a popular vacation destination for tourists from Quebec, where the airline is based.
The suspension's effects extended beyond the Canadian company. Alongside Air Canada and WestJet, Air Transat has indefinitely canceled all flights and travel packages to the island, contributing to the sharp decline in Canadian tourism, traditionally Cuba's largest source of visitors.
The numbers illustrate the dramatic drop. Between January and April 2026, only 125,444 Canadian tourists visited Cuba, compared to the 346,109 recorded in the same period the previous year, marking a decrease of 63.8%.
Seeking Financial Relief Amid Broader Industry Challenges
For a tourism sector already grappling with hotel occupancy issues, service shortages, and infrastructure decay, the temporary loss of thousands of Canadian travelers has been particularly devastating.
Amidst worsening financial conditions, Air Transat announced plans to seek aid through a new loan program established by the Canadian government to assist airlines affected by the global fuel crisis.
The company's CFO, Jean-François Pruneau, confirmed their intention to secure the maximum allowed under the program, up to CAD 150 million.
Further complicating the situation are operational issues unrelated to Cuba. Currently, five of the airline's 42 aircraft are out of service due to the removal of engines manufactured by Pratt & Whitney.
Guérard noted that this situation continues to affect the airline's flight schedules and revenue, with no complete resolution expected before 2028.
Air Transat's difficulties coincide with a challenging period for the North American aviation industry.
The International Air Transport Association (IATA) predicts that the profits of major airlines in the region will decrease by approximately USD 3 billion this year due to rising energy prices caused by tensions in the Middle East.
However, for Air Transat, Cuba is now being directly cited as a factor in the company's financial decline for the first time.
What began as an internal fuel crisis in the island is now having repercussions far beyond Cuba's borders, impacting one of the airlines that has historically transported the most tourists to the country.
According to the company's forecasts, as reported by Investing.com, losses per share are expected to remain negative until the first quarter of fiscal year 2027.
Impact of Cuban Flight Suspension on Air Transat's Finances
What financial impact did the suspension of flights to Cuba have on Air Transat?
The suspension of flights to Cuba resulted in a CAD 25 million loss for Air Transat within a single quarter.
Why did Air Transat suspend its flights to Cuba?
Air Transat suspended its flights to Cuba due to the Cuban authorities' inability to guarantee a supply of Jet A-1 fuel at Havana's airport.
How has the Cuban tourism decline affected Air Transat?
The decline in Cuban tourism has significantly impacted Air Transat, as Cuba was one of their key destinations, contributing to a substantial decrease in Canadian tourist numbers.