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00B3F0 D1ECFA 0076D6 172C54 E477BF FADD4B Supplementary Disclosure Results for the third quarter ended July 31, 2026
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00B3F0 D1ECFA 0076D6 172C54 E477BF FADD4B Forward-Looking Statements 2 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, measures taken, planned or contemplated by governments regarding the imposition of tariffs on exports and imports, real or perceived terrorism, outbreaks of epidemics or disease, 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 maintain and grow its reputation and brand, the availability of funding in the future for the Corporation including its debt refinancing, the Corporation’s ability to repay its debt and settle its liabilities from internally generated funds or otherwise, the Corporation’s ability to maintain an adequate level of liquidity for its working capital requirements, the Corporation’s ability to adequately mitigate the Pratt & Whitney GTF engine issues, fluctuations in fuel prices and exchange rates and interest rates, the availability and continuity of fuel supply at each airport served by the Corporation, 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, regulatory developments or procedures, pending litigation and third-party lawsuits, the Corporation's ability to reduce operating costs through, among other things, the Elevation Optimization Program initiatives, 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 Management's Discussion and Analysis included in our 2025 Annual Report, filed on SEDAR+ at www.sedarplus.ca. 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 presentation 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, drawdowns under existing credit facilities or by other means. The outlook whereby, for the fourth quarter 2026, the Corporation expects a 2% increase in capacity, measured in available seat-miles, compared to 2025. The outlook whereby, the launch of the loyalty program by the end of 2026 and the modernization of the cabin interiors in the beginning in the second half of 2027, will significantly expand the Corporation's Premium offering. 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, that fuel supplies will continue to be available on terms generally consistent with those currently being offered, that fuel prices, exchange rates, selling prices, and hotel and other costs remain stable, that the Corporation will be able to adequately mitigate the Pratt & Whitney GTF engine issues, and that the initiatives identified to improve adjusted operating income (adjusted EBITDA) can be implemented as planned, and will result in cost reductions and revenue increases. 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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00B3F0 D1ECFA 0076D6 172C54 E477BF FADD4B 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, the revaluation of the liability related to warrants and preferred shares, gain (loss) on business disposals and/or asset disposals, the effect of changes in discount rates used for accretion of the provision for return conditions, changes in market price of CORSIA Eligible Emissions Units (carbon credits), restructuring costs, asset write-offs and impairment, reversal of impairment of the investment in a joint venture, depreciation and amortization, foreign exchange gains (losses), gain on long-term debt extinguishment 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. 3
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00B3F0 D1ECFA 0076D6 172C54 E477BF FADD4B 4 General Overview Q3 2026
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00B3F0 D1ECFA 0076D6 172C54 E477BF FADD4B Highlights Q3 2026 1. Refer to Non-IFRS Financial Measures in the Appendix. 5 $793M Revenues ($1M) Adjusted EBITDA1 ($107M) Net Loss ($302M) Free Cash Flow1 Sustained higher fuel prices significantly reduced quarterly profitability
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00B3F0 D1ECFA 0076D6 172C54 E477BF FADD4B Operating Metrics ▪ Capacity increased by 6.1% year-over-year ▪ Increase in ASMs driven by the transatlantic network, main summer program, up 8.4% ▪ South network under pressure, mainly due to the suspension of flights to Cuba ▪ Yield down 1.0%, as competitive conditions limited the recovery of higher fuel costs through fares ▪ Persistent issues with Pratt & Whitney’s GTF engines continued to weigh on revenue management ▪ For the fourth quarter, load factor is currently 0.6 percentage points higher than at the same point last year, while yield remains broadly in line with last year 6 Versus 2025 Global Network Transatlantic (Main Network) Load Factor - 0.3 pp (84.7%) + 0.2 pp (85.1%) Yield1 - 1.0 % + 0.6 % Capacity (ASM2) + 6.1 % + 8.4 % Capacity (Seats) + 1.5 % + 7.4 % Key Indicators for Q3 2026 1. Airline unit revenues expressed in revenue per passenger-mile. 2. Available seat miles.
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00B3F0 D1ECFA 0076D6 172C54 E477BF FADD4B Capacity and Fleet Overview 7 2025 2026 Winter Summer Winter Summer A330 16 16 16 15 A321LR 19 19 19 19 A321ceo 9 8 8 7 Total 44 43 43 41 Fleet Overview 1 1. Includes short-term leases and reflects the fleet at the peak of the season. ▪ Q4 2026 capacity to increase by 2% vs. 2025 ▪ Ongoing network optimization, with targeted capacity adjustments in the higher fuel price environment ▪ Suspension of flights to Cuba ▪ Pratt & Whitney GTF engine issues continue to impact operations, with 4 aircraft grounded as at July 31, 2026 ▪ Ongoing inefficiencies and elevated operational volatility ▪ Full resolution of the issue not expected before 2028 ▪ Permanent fleet of 41 aircraft at quarter-end ▪ One A321ceo exited the fleet during the quarter ▪ Deliveries of A321XLR aircraft are expected to begin in the second half of 2027
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00B3F0 D1ECFA 0076D6 172C54 E477BF FADD4B Summary ▪ Q3 operating performance affected by elevated fuel costs and yield pressure ▪ Competitive market conditions limited the recovery of higher fuel costs through fares ▪ Persistent Pratt & Whitney GTF engine issues continued to weigh on revenue management ▪ Adjusted EBITDA1 declined by $82M year-over-year ▪ $105M gross increase in fuel costs, partly offset by $25M in government grants recognized against fuel expense ▪ Higher salaries, mainly reflecting the new pilot collective bargaining agreement and additional crew hours arising from engine-related operational disruptions ▪ Closing of new $150M Liquidity for Airline Sector Resilience (LASR) facility from the Government of Canada, now fully drawn ▪ Matures in July 2030 and bears interest at 3.91% ▪ ~$175M estimated cumulative impact of higher fuel prices on our costs since the beginning of the fuel crisis ▪ Additional $250M in financing secured from CEEFC under the existing LEEFF agreement, providing further liquidity support ▪ Advancing strategic priorities to build revenue resilience ▪ New loyalty program on track for launch by end-2026, with the soft launch underway, and cabin renewal beginning in the second half of 2027 to modernize the product and optimize the premium offering 8 1. Refer to Non-IFRS Financial Measures in the Appendix.
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00B3F0 D1ECFA 0076D6 172C54 E477BF FADD4B 9 Financial Review Q3 2026
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00B3F0 D1ECFA 0076D6 172C54 E477BF FADD4B Q3 2026 Results ▪ Revenues of $793M, up $26M or 3.4% year-over-year ▪ Traffic up 5.8% in revenue-passenger-miles, on capacity growth of 6.1% ▪ Yield down 1.0% year-over-year ▪ Includes $7M in Pratt & Whitney compensation recorded during the quarter, comparable to last year ▪ Adjusted EBITDA¹ of negative $1M, compared to $81M in Q3 2025 ▪ Approximately $105 million gross increase in fuel costs, before a $25 million reduction related to the LASR facility ▪ Fuel price up 56% year-over-year ▪ Higher salaries ▪ Partially offset by traffic growth ▪ Net loss of $107M (Q3 2025 net income included a $345M one-time debt gain) 10 Q3 2025 Q3 2026 1. Refer to Non-IFRS Financial Measures in the Appendix. $766M $793M $81M ($1M)($12M) ($90M) Revenues Adj. EBITDA1 Adj. Net Loss
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00B3F0 D1ECFA 0076D6 172C54 E477BF FADD4B Financial Profile ▪ Free cash flow¹ of negative $302M, compared to negative $122M in Q3 2025 ▪ Higher cash used in operating activities, primarily reflecting lower profitability ▪ Prior-year quarter benefited from $61M in proceeds from engine sale-and-leaseback transactions ▪ Long-term debt and deferred government grant totaled $448M at quarter-end, compared to $320M at the end of Q2 2026 and $400M at fiscal 2025 year-end ▪ $125M initial drawdown under the new LASR facility ▪ $30M draw on the subordinated working capital facility ▪ $50M repaid on the revolving term credit facility since the beginning of the year ▪ $150M LASR facility fully drawn, $25M balance drawn in September 2026 ▪ Additional $250M in LEEFF debt ▪ Matures in 2035 and bears interest at 1.22% for the first three years and 3.00% thereafter 11 $390M $243M Cash Position 1. Refer to Non-IFRS Financial Measures in the Appendix. $320M $448M Long-Term Debt and Deferred Government Grant Q2 2026 Q3 2026 Long-Term Debt and Deferred Government Grant
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00B3F0 D1ECFA 0076D6 172C54 E477BF FADD4B 12 Appendix
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00B3F0 D1ECFA 0076D6 172C54 E477BF FADD4B Debt Breakdown 13Note: As of July 31, 2026. Amounts in millions of C$. 1. Refer to Non-IFRS Financial Measures in the Appendix. Sources of capital Type of instruments Accounting Policies Facility Amount Maturity date (Fiscal Year) Considerations Accounts Carrying Amount Available Used Unused Bank facilities Revolving Credit Facility (1st lien secured) Long-term debt 0 25 0 25 2028 - Interest rate: CORRA plus a premium of 4.5%. Government facilities LEEFF Subordinated Credit Facility Long-term debt 72 175 175 0 2035 - Interest rate: 1.22% per annum until July 2028, and 3% per annum thereafter. Deferred government grant 103 LEEFF Secured Debenture Long-term debt 62 145 145 0 2035 - Interest rate: No interest for the first 5 years. Starting in year 6, interest will accrue at an annual rate of 7%, increasing by 1 percentage point each year thereafter, up to a maximum of 12%.Deferred government grant 83 LEEFF Subordinated Working Capital Facility Long-term debt 30 75 30 45 2035 - Interest rate: 7% per annum until July 10, 2026, and thereafter at CORRA plus a premium of 4.5% LASR Facility Long-term debt 94 150 125 25 2030 - Interest rate: 3.91% per annum.Deferred government grant 3 Long-term debt and deferred government grant 448 570 475 95 Lease liabilities Fleet Lease liabilities 1,256 1,256 2026-2036 Real Estate Lease liabilities 37 37 2026-2037 Government facilities Warrants (equity derivatives) Current portion of liability related to warrants 15 15 2035 - 19.9% exercisable in stock and the excess will be payable in cash on the basis of the difference between the market price of Transat 's shares and the exercise price. Total debt1 1,756 1,783 Cash Unrestricted cash Cash & cash equivalents (243) (243) Total net debt1 1,513 1,540
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00B3F0 D1ECFA 0076D6 172C54 E477BF FADD4B Non-IFRS Financial Measures The non-IFRS measures, non-IFRS ratios, total of segment measures, capital measures and/or other financial measures used by the Corporation are as follows: ➢ Adjusted operating income (loss) or Adjusted EBITDA1: Operating income (loss) before depreciation, amortization and asset impairment expense, reversal of impairment of the investment in a joint venture, the effect of changes in discount rates used for accretion of the provision for return conditions, changes in market price of CORSIA Eligible Emissions Units (carbon credits), restructuring and transaction costs and other significant unusual items, and including premiums related to derivatives that matured during the period. The Corporation uses this measure to assess the operational performance of its activities before the aforementioned items to ensure better comparability of financial results. Adjusted operating income is also used to calculate variable compensation for employees and senior executives. ➢ Adjusted pre-tax income (loss) or Adjusted EBT1 : Income (loss) before income tax expense before change in fair value of derivatives, revaluation of liability related to warrants and preferred shares, gain on long-term debt extinguishment, gain (loss) on business disposals, gain on disposal of investment, gain (loss) on asset disposals, gain on sale and leaseback of assets, the effect of changes in discount rates used for accretion of the provision for return conditions, changes in market price of CORSIA Eligible Emissions Units (carbon credits), restructuring and transaction costs, write-off of assets, reversal of impairment of the investment in a joint venture, foreign exchange gain (loss) and other significant unusual items, and including premiums related to derivatives that matured during the period. The Corporation uses this measure to assess the financial performance of its activities before the aforementioned items to ensure better comparability of financial results. ➢ Adjusted net income (loss)1: Net income (loss) before change in fair value of derivatives, revaluation of liability related to warrants and preferred shares, gain on long-term debt extinguishment, gain (loss) on business disposals, gain on disposal of investment, gain (loss) on asset disposals, gain on sale and leaseback of assets, the effect of changes in discount rates used for accretion of the provision for return conditions, changes in market price of CORSIA Eligible Emissions Units (carbon credits), restructuring and transaction costs, write-off of assets, reversal of impairment of the investment in a joint venture, foreign exchange gain (loss), reduction in the carrying amount of deferred tax assets and other significant unusual items, and including premiums related to derivatives that matured during the period, net of related taxes. The Corporation uses this measure to assess the financial performance of its activities before the aforementioned items to ensure better comparability of financial results. Adjusted net income (loss) is also used in calculating the variable compensation of employees and senior executives. ➢ Adjusted net income (loss) per share1: Adjusted net income (loss) divided by the adjusted weighted average number of outstanding shares used in computing diluted earnings (loss) per share. ➢ Free cash flow2: Cash flow from operating activities minus cash flow from investing activities and repayment of lease liabilities. The Corporation uses this measure to assess the cash that is available to be distributed in a discretionary way such as repayment of long-term debt or government deferred grant, distribution of dividend to shareholders, etc. ➢ Total debt1: Long-term debt plus lease liabilities, deferred government grant and liability related to warrants, net of deferred financing cost related to the subordinated debt - LEEFF. Management uses total debt to assess the Corporation’s debt level, future cash needs and financial leverage ratio. Management believes this measure is useful in assessing the Corporation’s capacity to meet its current and future financial obligations. ➢ Total net debt1: Total debt (described above) less cash and cash equivalents. Total net debt is used to assess the cash position relative to the Corporation’s debt level. Management believes this measure is useful in assessing the Corporation’s capacity to meet its current and future financial obligations. Note 1: The reconciliations between IFRS financial measures and non-IFRS financial measures are incorporated by reference in Section 2 Non-IFRS Financial Measures of our MD&A in our Third Quarter Report 2026, which is available on SEDAR+ at www.sedarplus.ca. Note 2: See table above. 14 Free Cash Flow Quarters ended July 31 Nine-month periods ended July 31 (In thousands of Canadian dollars) 2026 2025 2026 2025 $ $ $ $ Cash flows related to operating activities (220,546) (104,915) 194,168 271,505 Cash flows related to investing activities (20,715) 31,202 (55,467) 19,624 Repayment of lease liabilities (60,503) (48,421) (134,798) (141,855) Free cash flow (301,764) (122,134) 3,903 149,274