Transat A T : 2024 06 06 — Supplementary disclosure – Q2 2024

Results for the second quarter ended April 30, 2024

Supplementary Disclosure

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, 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 repay its debt, 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, 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 made a slight adjustment to its fiscal 2024 capacity expansion plans, which now stands at 11%, versus 13% 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, the revaluation of the liability related to warrants, gain (loss) on business disposals and/or asset disposals, 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 (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 Q2 2024

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Highlights - 6M FY2024

$1,759M $29M

Revenues

Adjusted EBITDA1

LAUNCH OF PHASE ONE OF	($115M)	$149M
THE JOINT VENTURE
	Net Loss	Free Cash Flow1

Revenues grew 14% versus 2023

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

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Operating Metrics

• Solid increase in traffic
• • +12% in Q2 2024
  • +16% in 6M 2024
• Load factors remain in line with last year, but yields are under downward pressure due to:
• • Increased competition
  • Economic slowdown
  • Inefficiencies from engine issue impacting revenue management
• 2024 summer trends
• • The yield environment is expected to remain challenging this summer
  • Load factors for the summer period are currently 2 percentage points lower compared to the same date in fiscal 2023, while yields are 8% lower

Key Indicators for Q2 2024

Versus 2023	Global Network	South
(Main Network)

Load	- 0.6 pp	- 0.8 pp
Factor	(85.5%)	(84.5%)
Yield1	- 7.5 %	- 8.1 %
Capacity	+ 13.1 %	+ 12.9 %
(ASM2)
Capacity	+ 8.9 %	+ 11.3 %
(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 for 2024 over 2023 from +13% to +11%
• • Minimal adjustments during the off-peak season
• Grounded aircraft in Winter 2024 and delayed delivery of A321LRs required the temporary leasing of aircraft and the reallocation of aircraft between routes
• No ACMIs needed for summer 2024
• • Delivery of four A321LR aircraft, pivotal to the

fleet optimization and growth strategy

• Delivery of three A330s will help mitigate the impact of grounded aircraft

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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Summary

• Fully prepared from an operational standpoint to welcome passengers for the upcoming summer season
• • Completed the process of bringing in-house passenger and ramp services at Montreal's Pierre Elliott Trudeau International Airport
  • Progressing on the implementation of the commercial joint venture with Porter, with the launch of phase one and the first passengers expected in the coming weeks
  • Delivery of seven aircraft for the summer season, including four A321LRs, which are the cornerstone of Transat's fleet and growth strategy

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Financial Review Q2 2024

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Financial Highlights

• Revenue growth of 12% driven by a strong increase in traffic
• Achieved adjusted EBITDA1 of $38M
• Extended April 2025 maturities (principal of $91M) to 2026, providing additional flexibility
• • No debt maturity scheduled before 2026
• Early repayment of the outstanding principal balance of $36M due in April 2025
• Total debt repayment of $110M over the last three quarters

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

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