Good morning, ladies and gentlemen. Welcome to the Transat conference call. Please note that this conference call is being recorded. I would now like to turn the meeting over to Andréan Gagné, Senior Director, Communications, Public Affairs, and Corporate Responsibility. Please go ahead, Ms. Gagné. [Non-English content] Hello, everyone, and thank you for joining us for our second quarter earnings call ended April 30th, 2026. Annick Guérard, President and CEO, and Jean-François Pruneau, Chief Financial Officer, will provide you an overview of the quarter and comment on the current operational situation and commercial plans. Jean-François will also discuss our financial results in detail. We will then take questions from financial analysts. Questions from journalists will be taken offline after the call. The conference call will be conducted in English, but questions may be asked in French or English. As usual, our supplementary disclosure has been updated and is available on our website in the investors section. Jean-François may refer to it when he presents the results. Our comments and discussion today may include forward-looking information regarding Transat's outlook, objectives, and strategies that are based on assumptions and subject to risks and uncertainties. Forward-looking statements represent Transat's expectations as at June 11, 2026, and are therefore subject to change after today. Our actual results may differ materially from any stated expectations. Please refer to our forward-looking statement in Transat's second quarter news release, available on transat.com and on SEDAR+. I would like to turn the call over to Annick for opening remarks. Thank you, Andréan. Good morning. Thank you for joining our conference call for the second quarter of fiscal 2026. Following a solid first quarter that continued the positive momentum of fiscal 2025 and reflected the tangible benefits of our strategic initiatives, second quarter results were significantly below our expectations as factors beyond our control severely impacted profitability. With prices remaining high due to prolonged closure of the Strait of Hormuz, fuel costs increased operating expenses by about CAD 70 million in March and April, and the impact persisted in May. Additionally, the sudden halt of our operations to Cuba further impacted results by about CAD 25 million. Together, these two external factors resulted in a negative impact of about CAD 95 million on adjusted EBITDA. During this period of intense volatility, we've implemented specific measures to mitigate adverse effects, such as fuel surcharges on new bookings and targeted adjustments to network capacity, which was reduced by 6% from May to October 2026. Fuel surcharges had a marginal impact on our second quarter results since most reservations for this period had been booked prior to the start of the conflict in the Middle East. We anticipate surcharges will gradually mitigate the effect of higher fuel costs, with full offset only expected toward the end of the year. We welcome the introduction by the Government of Canada of the Liquidity for Airline Sector Resilience facility, which recognized the significant fuel cost pressures currently facing Canadian airlines. Transat intends to apply to the facility, which will provide meaningful support as we navigate the current environment with a continued focus on disciplined cost management, operational execution, and delivering for our customers. In the context of an industry-wide fuel crisis that caused operational disruptions and network adjustment, we experienced downward pressure on key metrics in the second quarter. Our yield declined 0.7 percentage points after five consecutive quarters of growth, while our load factor was 83.8% compared to 84.6% in the second quarter of 2025. Capacity expressed in available seat miles grew by 4.8%, while capacity for south routes, our main program during this period, rose by 1.7% despite the suspension of Cuba. It should be recalled that following the initial cancellation of flights to Cuba in mid-February, the short notice only allowed for a partial redeployment of that capacity to other destinations. Finally, traffic expressed in revenue passenger miles rose 3.9% in the second quarter, reflecting strong demand. Out of a fleet of 42 aircraft at the end of the second quarter, five were grounded due to GTF engine issues, compared to three initially anticipated. This ongoing problem continues to drive operating inefficiencies, increase scheduling variability, and negatively impact revenues. Since the beginning of this supply chain crisis, Pratt & Whitney has not been able to provide us with clear visibility on a detailed resolution plan. The situation remains highly volatile for Transat. We still expect three aircraft to be grounded this summer, and full resolution is not expected before early 2028. Moving to our network, several new routes were recently unveiled as part of the next winter program, alongside the extension of European routes to year-round service. These include new connections to south destination in Europe, as well as the annualization of key transatlantic routes such as Toronto-Paris and Montreal-Barcelona. This reflects continued progress on network diversification and a focus on reducing seasonality through a more balanced year-round offering. We also announced recently the introduction of a year-round non-stop service between Montreal and Istanbul starting in October. This addition builds on the existing Toronto-Istanbul route, whose strong performance has confirmed solid demand for travel to Turkey and beyond through the collaboration with Turkish Airlines. Partnerships remain a key pillar and cornerstone of our network strategy, not only with Turkish Airlines and several interline agreements with Iberia as the newest addition, but also through our joint venture with Porter Airlines that has been further strengthened with the launch of Transat self packages on Porter-operated flights, with Transat acting as a tour operator. This initiative adds new destinations for Transat customers such as Nassau and Grand Cayman and expands options to Mexico with flights operated by either Porter or Transat, offering greater flexibility and convenience. As we look ahead to the summer season, load factors to date are 0.6 percentage points lower compared to the same period last year, while unit revenues expressed as yields are 0.6% higher than they were at this time last year. As for capacity, reflecting our latest adjustment, we expect a 4%-5% increase measured in available seat miles for all of fiscal 2026 compared to last year. In conclusion, the quarter, and likely the defining chapter of our year, was shaped by two abrupt external shocks rather than underlying execution issues. First, the sudden halt of our Cuba operations led to an immediate and significant revenue loss while leaving us with fixed operating costs that could not be redeployed in the short term. Second, the industry faced a sharp and rapid increase in fuel prices. We implemented mitigating measures, market condition and demand elasticity constrained our ability to fully pass these costs on to customers without materially affecting demand and overall revenue performance. Both these factors were exceptional, exogenous, and unfolded within a very short timeframe, limiting our capacity to adjust our operation and cost structure dynamically. Our Q2 results do not reflect in any way the progress accomplished by our teams in executing our plan. We remain fully committed, navigating today's industry challenges with determination and resilience. We will continue to proactively adjust our strategies in a timely and diligent manner for the remainder of the fiscal year. This concludes my remarks for today. Jean-François will now review our financial results. Thank you, Annick. Good morning, everyone. Our second quarter results were affected by several factors, the most important of which were outside our control. First, the sharp increase in fuel prices had an adverse impact on profitability, as only a marginal portion of the increase was recovered through surcharges on new bookings during the period. Second, the suspension of flights to Cuba reduced revenue as capacity redeployment efforts only partially mitigated the effect and resulted in additional costs. Looking more closely at the results, revenues were relatively stable year-over-year at CAD 1.003 billion. The suspension of flights to Cuba caused a revenue shortfall of CAD 81 million compared to last year. In addition, compensation revenue from Pratt & Whitney related to grounded aircraft was CAD 5 million in the second quarter of fiscal 2026, versus CAD 20 million last year, as the prior year amount reflected an extended period from October to April following the agreement signed in April, while the current year reflects only the quarter. The revenue decline was partially offset by a 3.9% traffic increase while yields were marginally lower. Adjusted EBITDA was - CAD 21 million compared to + CAD 98 million last year. This shortfall of nearly CAD 120 million can be broken down as follows. Approximately CAD 70 million in additional fuel costs incurred in March and April, driven by the rapid increase in fuel prices following the start of the conflict that shut down the Strait of Hormuz. As mentioned, surcharges had a marginal impact since most bookings for the second quarter had been made prior to the onset of the conflict. The situation in Cuba affected operating income by approximately CAD 25 million, reflecting both lost revenue from last-minute flight cancellations and higher costs associated with partial capacity, with redeployment and customer repatriation efforts. I already pointed out the CAD 15 million year-over-year reduction in compensation from Pratt & Whitney. The volatile engine situation also resulted in unplanned costs and inefficiencies. We also incurred higher year-over-year salary and benefit expenses, primarily reflecting the new collective agreement with our pilots, including temporary inefficiencies related to its implementation, such as more overtime. Finally, we had an increase in general expenses, including approximately CAD 5 million directly related to the proxy fight leading up to our last annual general meeting. These factors were partially offset by a capacity increase. As a result, the net loss was CAD 79 million in Q2 2026 compared to a net loss of CAD 23 million in the same period last year. Adjusted net loss was CAD 105 million versus adjusted net income of CAD 5 million reported last year. Moving to our financial position, cash flow generated by operating activities were CAD 118 million in Q2 2026 compared to CAD 208 million last year. The variation reflects lower profitability, while the net change in non-cash working capital balances was in line with last year. As for investing activities, CapEx was CAD 19 million in the quarter, compared to CAD 15 million a year ago. Turning to our balance sheet, cash and cash equivalents totaled CAD 390 million as of April 30, 2026, relatively stable from CAD 387 million at the end of Q1. Cash and cash equivalents in trust or otherwise reserved, mainly resulting from travel package bookings, amounted to CAD 194 million at the end of Q2 2026, down from CAD 528 million at the end of Q1, reflecting the seasonal nature of our operations. Long-term debt and deferred government grants stood at CAD 320 million as of April 30th, 2026, down from CAD 375 million three months ago and down from CAD 812 million 12 months ago, prior to our debt refinancing last summer. The CAD 55 million quarter-over-quarter decrease reflects the repayment of CAD 25 million on our revolving term credit facility and CAD 30 million on our subordinated working capital facility during the second quarter. As a result, Transat had a net cash and cash equivalent position of CAD 70 million at the end of Q2 2026, up from a net cash position of CAD 12 million three months ago, and up from a net debt position of CAD 280 million a year ago. To summarize, the second quarter results were affected by a perfect storm, mostly comprised of external factors which affected profitability by CAD 119 million, essentially fuel, CAD 70 million, Cuba, CAD 25 million, and Pratt & Whitney, CAD 15 million. As Annick mentioned, Transat intends to apply to the LASER facility administered by the Canada Enterprise Emergency Funding Corporation, CEEFC, which would provide additional financial flexibility as we remain focused on executing our strategic priorities. The facility would provide access to up to CAD 150 million in funding, with exact amounts determined as a function of the year-over-year increase in fuel prices resulting from the closure of the Strait of Hormuz. The facility will strengthen our liquidity position and provide additional financial flexibility. Looking ahead to the second half of the year, elevated fuel prices will continue to weigh on our operating results. That said, surcharges and other actions are expected to help partially offset the impact, while draws on the LASER facility will provide additional support. On the broader cost front, we are taking decisive action to recalibrate our operating cost structure in line with deployed capacity and to rapidly mitigate the short-term impact arising from the rollout of new operational rules under our new pilot agreement. Finally, we will continue to benefit from lower interest charges, while efficiencies and gains from Elevation Program are expected to further ramp up. In summary, we will maintain a strict discipline on elements we can control. This concludes my comments. We will now open the call for questions from analysts. Thank you. Ladies and gentlemen, if you do have any questions, please press star followed by one on your touch-tone phone. You will then hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by two. If you're using a speakerphone, you will need to lift the handset first before pressing any keys. Please go ahead and press star one now if you have any questions. First, we will hear from Konark Gupta at Scotiabank. Please go ahead. Thanks. Good morning. Maybe the first question on the fuel in the second quarter, I guess a CAD 70 million headwind, you pointed out early on, so it was expected. What was any benefit of fuel hedging in the quarter, if you had, and do you expect some of the hedges to roll into Q3 as well? Yep. Essentially our hedging strategy. Oh, I'm sorry. We were on mute, I believe. Essentially our hedging strategies with respect to fuel are using options rather than using forwards. Essentially we're not locking in price, but rather using strategies that provide a discount mechanism over market prices. That will be the case for the second half of the year as well. Okay. There's some benefits of that potentially in the second half as well. Correct. There was some in the second quarter as well. Thanks for that. In terms of the fuel availability itself, that's been a challenge in Europe to some degree. How are you guys procuring fuel? Do you have any agreements in place, or do you have any visibility on the supply side? Yeah, we are obviously closely monitoring the situation in collaboration with our suppliers. We have secured the fuel supply that is required to operate our full summer program, in fact. Our operations are running as planned, and we expect that they will continue to run as planned for the rest of the summer. Okay, great. Last one for me before I turn over. On the yield side for the summer, you guys are looking at this point, obviously, 60 basis points improvement in yield versus last year at the current time span. I was just wondering, with the fuel surcharges and the fares and ancillary fees, et cetera, with all that going up, some of the North American airlines are looking at very decent double-digit numbers in yield increases. What's the delta? What's the gap between you guys and your peers? When we're looking at the yield so far for summer, our yields are up 0.6%. In percentage, the Atlantic market is up 1.7%, South is down about 6%. When we compare in terms of average fare for summer, the average fare is up 4.5% compared to last year. As explained initially, we see that the overall fuel surcharge that we put in the market did not stick. It sticked at the beginning, not recently. The initial surcharge were well absorbed with demand remaining resilient through the early rounds of increases. More recent increases resulted in a slowdown in the booking momentum. The situation, however, remains very volatile. At the moment, we need to stimulate demand with fare adjustments on targeted routes. We have communicated over the past week that surcharges are expected to progressively offset higher fuel costs towards year-end, but it will still be limited for summer season as we are looking into a pattern right now. Demand remains robust and customers remain price sensitive. Therefore, price aggressiveness is necessary at this point for keeping bookings and overall revenue targets for summer. It's difficult to compare with our competitors because, as you know, we have less of a premium class. We're more leisure focused. When we compare ourselves to more legacy carriers on the Atlantic market, for instance, they benefit from customers that are less price sensitive. Unfortunately, this is something that we have, but to a less extent compared to our competitors. There is still a lot of capacity in the market, so that's putting pressure on the yields as well. On specific routes where we see a potential of increasing our yield, we are doing everything we can to push it forward. There's still capacity to be sold for the rest of summer, and we are confident that Well, first I would say with consumers, we are more confident that there won't be any fuel shortage during summer. That's going to bring demand up. In that sense, we believe that we will be able to yield a little more to what we've been experienced over the last weeks. That's fair enough then. Thanks for that. Appreciate the time. Thank you, Konark. Next question will be from Benoît Poirier at Desjardins. Please go ahead. Good morning, everyone. With respect to the overall year yield increase for this summer, 60 basis points, what portion of the fuel increase is currently covered by the yield, or what kind of yield should we see to offset the full impact of the fuel right now? Like Annick said, up until mid-May, surcharge on new bookings were essentially completely offsetting additional costs related to fuel. Since then, our ability to offset additional costs without impacting demand started to erode. Recently, when we compare our yields, our marginal yields to last year, we don't see a lot of offset of additional costs related to fuel prices. Okay. That's great. Yeah. Benoît, if we look at the average fare for summer, as we look at our numbers today, it is up 4.5% compared to last year. If fuel surcharge had stuck, I would say we would be more around 15%. There is some surcharge that are being absorbed, but not fully at this point. Okay. Annick, any big discrepancy between South and your global network in terms of ability to pass those fuel surcharge? It looks like that the global networks, there's a little bit more competition as opposed to the South. South, it's Europe in terms of demand remains strong, robust. We have ability on the European market. The South market, demand remains very challenging, not only with the suspension of Cuba, but other external factors as well as security issues in Mexico and Jamaica, which has not fully recovered from the hurricane. This is all creating less favorable backdrop. It's easier for our customer to absorb the surcharge on Europe. South remains difficult at this point. Okay. Jean-François, you made great comments about the LASER facility with the federal program and the up to CAD 150 million that you could pull. What is the timing on that? When would you expect to pull on the amount? Yeah. Essentially, drawdowns will be reflecting the increase in fuel prices from May to October. It will be monthly drawings, the first draw will essentially be retroactive to May 1st, and then on a monthly basis, we will draw on the facility up until we reach CAD 150 million. Okay. Last question for me. Could you talk about the ramp-up of your fidelity program that you put in place, and how are you tracking versus expectation? Okay. You're asking about the timeline for the loyalty program? Well, I know it's still far ahead, there's still work to be done, but just so far, how it's shaping up versus the schedule. It's going very well. We are in a beta phase during summer, and a full commercial launch is targeted towards the end of 2026. We are working closely with Desjardins, as you know, to launch a program that will be highly innovative. The partnership with Desjardins and Visa that we unveiled in January for co-branded credit cards really creates a compelling value proposition for our customers, and potential new customers as well. We are on track to deliver this by the end of 2026. That's great. Thank you for the thoughts. Thanks, Benoît. Next question will be from Tim James at TD Cowen. Please go ahead. Thank you very much for the time. Good morning. My first question, I guess a bit of a clarification, maybe. You mentioned average fares up 4.5% year-over-year. I believe that was for the summer. I'm wondering if you could give a comparable number for Q2, and forgive me if you did and I missed it. What the Q2 number was. When you make reference to that, does that include the fuel surcharge, or is the fuel surcharge on top of those growth rates? Yes, it does include the fuel surcharge. When we looked at Q2, we had revenues that were similar to last year, with capacity that was up 4.8%, but yields were down 0.7% year-over-year. Of course, as you know, in Q2, most of the capacity had already been sold when we introduced the fuel surcharge. In addition to that, there were several factors weighted on South performance with the Cuba suspension, Mexico, and we had more AOGs due to Pratt & Whitney engines. We couldn't get to the yields and pricing that we were anticipating, unfortunately. Okay. My next question, in the press release, there's a reference to recent market volatility has weakened pricing power. I'm trying to understand that comment. I'm wondering if you could maybe expand on that a little bit, how the actual volatility sort of impacts your ability to pass through higher fares. Well, when we look at demand, there was some passenger have started worrying about fuel surcharge. That was one thing. There was a lot of media coverage around the significant increase in pricing during summer season. We saw at one point that we were not able to sustain our fuel surcharges, and because the demand went down, there was some markets that could sustain it, other markets that could not sustain it. We had to introduce a couple of measures, including decreasing price on certain segments and increasing as well some flexibility measures for customers, removing fees, for instance, for modification or cancellation, depending on the family fares. We had to do a couple of actions on top of decreasing price to stimulate demand. Okay, that's very helpful, Annick. Thank you very much. Once again, ladies and gentlemen, a reminder to please press star one should you have any questions. Thank you. Next is Alexander Uchimura at CIBC. Please go ahead. Hi. Good morning. Thanks for taking my question. I have a two-part question on Elevation. First off, congrats on completing the program and hitting that CAD 100 million target. I was hoping, can you help us understand how much of that CAD 100 million annualized run rate was flowing through those Q2 results? Given you completed the program during the quarter, should we expect maybe an increased contribution in the third quarter? Yeah, in terms of Q2, on an LTM basis, we have captured everything that we wanted. In terms of the future or looking forward, there will be further initiatives that will continue to provide additional benefits, but it should be marginal. Okay. Thanks. yeah, I had a question on the pilot salaries. I saw them up 15% year-over-year. Can you help us understand the phasing of that? Should we think of that's the runway going forward, or maybe there were some one-time costs in that for the quarter? Can you repeat, Alex, please? I just missed the beginning of the question. yeah, that new pilot agreement was reached. I was wondering is that the full run rate that we should expect in Q2 at year-over-year increase, or maybe there were some one-time costs in that? No, there were some inefficiencies related to the transition between the old agreement and the new agreement, which resulted in a lot of overtime. Obviously, as we progress into the year, we should see that those inefficiencies going down. I wouldn't say that Q2 is the run rate year-over-year increase. On top of that, don't forget that last year we were under the older agreement regime, but starting in Q3, we'll be under the new agreement regime. On a year-over-year basis, the year-over-year increase should be lower going forward. Okay. Yeah, that makes sense. Thanks for taking my questions. Thank you. Thank you, Alex. At this time, Ms. Gagné, we have no other questions registered. Please proceed. Thank you, Sylvie. Thank you, everyone. As a reminder, our 2026 third quarter results will be released in September. Thank you and have a good day. Thank you. Ladies and gentlemen, this does conclude your conference call for today. Once again, thank you for attending, and at this time, we ask that you please disconnect your lines.