MONTREAL - Transat A.T. Inc. says it steered clear of a strike after reaching a tentative deal with pilots Tuesday evening.

The travel company, which owns leisure airline Air Transat, had been cancelling flights and winding down operations ahead of the possible work stoppage, affecting thousands of travellers.

Neither the company nor the union representing some 750 Air Transat pilots released details of the tentative agreement.

The Air Line Pilots Association was aiming for a new contract that boosts wages, job security and quality of life following big gains for aviators at Air Canada and WestJet over the past two years.

Transat's flight schedule was severely disrupted this week after it began to cancel flights in anticipation of a labour standoff.

The showdown comes at a particularly fraught time for Transat as it struggles to manage a large debt load, fend off a coup attempt from an activist investor and turn an annual profit for the first time since 2018.

This report by The Canadian Press was first published Dec. 9, 2025.

Companies in this story: (TSX:TRZ)

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