Reasons Behind Air Transat’s Layoffs

Reasons Behind Air Transat’s Layoffs

What is the reason for Air Transat layoff ?

Transat AT Inc., the operator of Air Transat, is considering laying off up to 80 employees as it deals with ongoing financial difficulties. The company, a major Canadian tour operator, has been struggling with a number of obstacles, which have significantly impacted its financial health.

According to a notice sent to the Québec government, the company is facing intense competition, engine recalls, and the potential for a union strike. These challenges, combined with broader industry pressures, have strained the company’s resources over the past year.

What is the Financial Situation at Air Transat?

Air Transat reported a net loss of C$39.9 million for the third quarter of its fiscal year 2024. This is a sharp contrast to the same period last year when the company posted a net income of C$57.3 million. The financial difficulties are further reflected in the stock price, which opened trading at C$1.73, down more than 2%. Since the start of the year, Transat’s stock has dropped by 53.89%.

The potential layoffs, affecting up to 80 employees, are being considered as a “precautionary measure” according to Air Transat spokesperson Andrean Gagne. These layoffs would not affect pilots, flight attendants, or other federally regulated roles. The notice sent to the Québec government is required under provincial labour regulations, even if the layoffs do not ultimately take place.

How Is Air Transat Handling the Situation?

The company emphasized that the layoffs, if they happen, are not a certainty but a precautionary step to comply with regulations. Transat AT Inc. continues to offer its travel programs to international destinations, primarily in Europe, the Caribbean, and North America, while working through these financial and operational challenges.

Recently Laid Off? Know Your Severance Rights

If you’re a non-unionized employee at Air Transat in Canada and have been laid off due to restructuring, you might be entitled to a severance package of up to 24 months’ compensation. In Ontario, larger layoffs involving 50 or more employees could offer additional severance benefits.

At Whitten & Lublin, our skilled employment lawyers are ready to guide you through this challenging period. Reach out to us for a consultation via our online portal or call (416) 640 2667 to understand your severance rights and secure the compensation you’re entitled to.