MONTREAL — The parent company of Air Transat says it paid $105 million in additional jet fuel costs in the third quarter compared with a year ago due to higher prices.
Transat A.T. Inc. says that since the closure of the Strait of Hormuz earlier this year it has paid a total of about $175 million in additional fuel costs as of the end of the third quarter.
It says that, according to recent industry assessments, volatility in the energy markets is expected to continue putting pressure on jet fuel costs in both the short and medium term.
The company noted that its ability to pass higher fuel costs on to customers has remained “very limited.”
Transat says it’s in talks with the federal government to explore potential solutions.
Last month, Transat signed a financing deal with Ottawa for a loan of up to $150 million to help offset the soaring price of jet fuel caused by the U.S.-Israeli war with Iran.
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