Transat A.T. Inc. has secured access to up to $150 million in federal aid to help cover soaring jet fuel costs driven by the ongoing war in the Middle East.
The Montreal-based travel company, which operates Air Transat, confirmed the arrangement as part of a broader government support package announced weeks ago to assist struggling airlines facing elevated input prices.
The loan facility underscores the immediate financial pressure on carriers as geopolitical tensions disrupt global energy markets.
With jet fuel prices remaining elevated due to supply risks in the region, the federal support aims to provide liquidity and stability for airlines navigating the crisis.
Transat’s utilization of the aid signals that the cost impact is material enough to require external financing to maintain operations.
This development follows earlier reports that Ottawa had established a loan lifeline for the aviation sector.