Transat A T : 2024-03-14 — Investor Presentation – Q1 2024

Results for the quarter ended January 31, 2024

Q1 2024 Investor Presentation

Forward-Looking Statements

This presentation contains certain forward-looking statements with respect to the Corporation, including those regarding its results, its financial position and its outlook for the future. These

forward-looking statements are identified by the use of terms and phrases such as "anticipate" "believe" "could" "estimate" "expect" "intend" "may" "plan" "potential" "predict" "project" "will"

"would", the negative of these terms and similar terminology, including references to assumptions. All such statements are made pursuant to applicable Canadian securities

legislation. Such statements may involve but are not limited to comments with respect to strategies, expectations, planned operations or future actions. Forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements.

The forward-looking statements may differ materially from actual results for a number of reasons, including without limitation, economic conditions, changes in demand due to the seasonal nature of the business, extreme weather conditions, climatic or geological disasters,

war, political instability, real or perceived terrorism, outbreaks of epidemics or disease and the lingering effects of the COVID-19 pandemic, consumer preferences and consumer habits,

consumers' perceptions of the safety of destination services and aviation safety, demographic trends, disruptions to the air traffic control system, the cost of protective, safety and environmental measures, competition, the Corporation's ability to adequately mitigate the Pratt

• Whitney GTF engine issues, maintain and grow its reputation and brand, the availability of funding in the future, fluctuations in fuel prices and exchange rates and interest rates, the Corporation's dependence on key suppliers, the availability and fluctuation of costs related to our aircraft, information technology and telecommunications, cybersecurity risks, changes in legislation, unfavourable regulatory developments or procedures, pending litigation and third party lawsuits, the ability to reduce operating costs, the Corporation's ability to attract and retain skilled resources, labour relations, collective bargaining and labour disputes, pension
  issues, maintaining insurance coverage at favourable levels and conditions and at an acceptable cost, and other risks detailed in the Risks and Uncertainties section of the MD&A.

The reader is cautioned that the foregoing list of factors is not exhaustive of the factors that may affect any of the Corporation's forward-looking statements. The reader is also cautioned to

consider these and other factors carefully and not to place undue reliance on forward-looking statements.

The forward-looking statements in this news release are based on a number of assumptions relating to economic and market conditions as well as the Corporation's operations, financial

position and transactions. Examples of such forward-looking statements include, but are not limited to, statements concerning:

The outlook whereby, the Corporation will be able to meet its obligations with cash on hand, cash flows from operations and drawdowns under existing credit facilities.

The outlook whereby, the Corporation does not foresee the same uplift in yields that was exhibited throughout the summer season last year, it will remain proactive in managing costs under its control, while actively seeking to mitigate the structural cost increases affecting the industry.

The outlook whereby, the Corporation now expects an adjusted EBITDA margin for the full year 2024 to be at the lower end of the range of 7.5% to 9.0% announced last December.

The outlook whereby, the Corporation revised its fiscal 2024 capacity expansion plans to 13%, versus 19% previously.

In making these statements, the Corporation assumes, among other things, that the standards and measures for the health and safety of personnel and travellers imposed by government and airport authorities will be consistent with those currently in effect, that workers will continue to be available to the Corporation, its suppliers and the companies providing passenger services at the airports, that credit facilities and other terms of credit extended by its business partners will continue to be made available as in the past, that management will continue to manage changes in cash flows to fund working capital requirements for the full fiscal year and that fuel prices, exchange rates, selling prices, and hotel and other costs remain stable, and the Corporation will be able to adequately mitigate the Pratt & Whitney GTF engine issue. If these assumptions prove incorrect, actual results and developments may differ materially from those contemplated by the forward-looking statements contained in this presentation.

The Corporation considers that the assumptions on which these forward-looking statements are based are reasonable. These statements reflect current expectations regarding future

events and operating performance, speak only as of the date this presentation is issued, and represent the Corporation's expectations as of that date. The Corporation disclaims any

intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable securities

legislation.

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Non-IFRS Financial Measures

We report our financial results in accordance with IFRS. This presentation was prepared using results and financial information determined under IFRS. In addition to IFRS financial measures, this presentation also contains non-IFRS financial measures, non-IFRS ratios, capital management measures and supplementary financial measures used by management to assess the Corporation's operational performance including adjusted operating loss, adjusted net loss, adjusted loss per share, total net debt, net cash burn, current ratio, free cash flow and unrestricted liquidity. These measures do not have a standardized meaning under IFRS. It is likely that the non-IFRS financial measures used by the Corporation will not be comparable to similar measures reported by other issuers or those used by financial analysts as their measures may have different definitions. The measures used by the Corporation are intended to provide additional information and should not be considered in isolation or as a substitute for IFRS financial performance measures.

Generally, a non-IFRS financial measure is a numerical measure of an entity's historical or future financial performance, financial position or cash flows that is neither calculated nor recognized under IFRS. Management believes that such non- IFRS financial measures are important as they provide users of our consolidated financial statements with a better understanding of the results of our recurring operations and their related trends, while increasing transparency and clarity into our operating results. Management also believes these measures to be useful in assessing the Corporation's capacity to fulfil its financial obligations.

By excluding from our results items that arise mainly from long-term strategic decisions and/or do not, in our opinion, reflect our operating performance for the period, such as the change in fair value of derivatives, gain (loss) on business disposals, restructuring costs, asset impairment, depreciation and amortization, foreign exchange gains (losses), gain (loss) on long-term debt modification and other significant unusual items, and by including premiums related to derivatives that matured during the period, we believe this presentation helps users to better analyze our results, as well as our ability to generate cash flows from operations. Furthermore, the use of non-IFRS measures helps users by enabling better comparability of results from one period to another and better comparability with other businesses in our industry.

See the Non-IFRS financial measures slide in the Appendix for more information, including a description of such measures.

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General Overview Q1 2024

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Q1 2024 Highlights

$785.5M ($8.6M)

Revenues

Adjusted EBITDA1

OFFICIAL PARTNER OF CF MONTREAL ($61.0M)	$39.1M
Net Loss	Free Cash Flow1

Revenues grew 17.7% versus Q1 2023

1. Refer to Non-IFRS Financial Measures in the Appendix.

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Operating Metrics

• Achieved a 20% increase in traffic compared to Q1 2023
• Expanded capacity for South destinations, the period's main program, by 30%
• Experienced a decline in yields1 and load factors
• • Faced lower than anticipated bookings and yield in the second half of the quarter primarily attributed to the potential strike of flight attendants
  • Encountered yield pressure in the South market
• Early trends for summer 2024
• • Yield and load factor are largely in line with last year
  • However, uplift trend exhibited last year is not expected

Key Indicators for First Quarter 2024

Versus 2023	Global Network	South
(Main Network)

Load	- 3.5 pp	- 3.0 pp
Factor	(80.2%)	(80.0%)
Yield1	- 3.1%	- 5.8%
Capacity	+ 25.0%	+ 30.0 %
(ASM2)
Capacity	+ 18.5%	+ 27.5%
(Seats)

1. Airline unit revenues expressed in revenue per passenger-mile.
2. Available seat miles.

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Capacity Increase and Fleet Overview

• Revised capacity increase from +19% to +13% in 2024
• • Necessary adjustments required due to structural issues affecting the industry and supply and demand dynamic for leisure travel
  • Aircraft leasing market has considerably tightened putting important pressures on availability and cost of short-term aircraft rental
  • Recently secured three A330 aircraft leases to support network needs in light of expected grounded A321 aircraft
• New routes (Marrakesh and Lima) and annualized destinations (Lyon and Marseilles) are exceeding expectations in terms of both bookings and yields

Fleet Overview1

		2023		2024
	Winter	Summer	Winter	Summer
A330	12	15	13	16
A321LR	12	15	15	19
Medium-	10	10	15	8
haul2
Total	34	40	43	43

1. Includes ACMI agreements and reflects the fleet at the peak of the season.
2. Mainly includes A321CEO and B737.

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Headwinds in 2024

• The Pratt & Whitney GTF engine issue currently grounding four aircraft
• • Expect the number to increase up to six by the end of fiscal year
  • Anticipating up to eight aircraft grounded in 2025
  • Mitigation efforts face limitations given industry-wide supply chain challenges, resulting in higher costs anticipated to persist throughout the year
  • Actively engaged in discussions around compensation
• Uncertainty surrounding negotiations with flight attendants had an impact on bookings, spanning both Q1 and Q2
• • Have since resulted in a new adopted collective agreement, removing uncertainty

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Summary

• Faced a challenging start to fiscal 2024
• Committed to pursuing Transat's strategic plan amid the prevailing challenges
• • Implementing the commercial joint venture with Porter
  • Strengthening historic routes and ensuring the success of new ones
  • Pursuing the deployment of the internal optimization program (Polaris)
  • Deploying solutions to improve revenue management
  • Executing the refinancing plan
• Encouraged by record customer deposits for future travel and the sustained demand for leisure travel

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Financial Review Q1 2024

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