Air Transat laying off hundreds of flight attendants, says cuts are temporary

People look on as an Air Transat plane takes off at the Montréal-Trudeau International Airport on June 11, 2023. (Graham Hughes / The Canadian Press)

Air Transat says it is laying off as many as 400 flight attendants, but plans to bring them back to work at some point, a move one expert called “a little unusual.”

Montreal-based international tour operator Transat A.T. Inc., which runs the Air Transat airline, confirmed in an email to CTVNews.ca Wednesday that the temporary layoffs will affect 350 to 400 staff starting Nov. 1.

"The layoffs are temporary due to the seasonality of our airline operations and a capacity reduction announced earlier this year and specifically concern our flight attendants," according to the corporate statement provided to CTVNews.ca. "We plan to recall staff in due course as soon as our flight schedule allows."

The company said it has used this measure several times before, noting the move complies with the collective agreement and "is common in the industry."

Will Transat layoffs affect services?

For instance, it said an average of 455 flight attendants were temporarily laid off per year from 2010 to 2016.

It said before the layoffs the company offered staff members "several mitigation measures," such as unpaid leave and a reduced schedule.

When CTVNews.ca asked whether the layoffs would affect flights and the airline’s ability to meet its legal obligations to passengers, Air Transat said the measure would not affect service.

“There is no impact on our airline activities, operations or flight schedule,” company spokesperson Andréan Gagné wrote in an email Wednesday. “We have all the crew members we need to operate our flight program, with the same level of service known to Transat.”

Despite what the company said, commercial aviation expert John Gradek believes Air Transat’s winter flight schedule may be affected due to the layoffs.

Air Transat typically operates a "robust schedule" to sun destinations such as Florida, the Caribbean and Mexico, but the temporary layoffs suggest it won't be flying as much during the winter travel season compared to last winter, said the faculty lecturer in supply networks and aviation management at McGill University.

If flights are reduced and there's fewer competition among airlines, passengers will be directly affected, he said.

"You'll have less choice this winter in terms of flying to the sun markets," Gradek said, recommending that passengers book winter fares and packages now before they get pricier. "You'll have higher prices."

Concerns about future

Air Transat's move is "a little unusual," Gradek added.

"Typically, you'd see a slight reduction in seasonal workforces," he said. "This one is a little too, too large for me."

While the company said financial challenges and reduced travel demand aren’t factors behind the temporary layoffs, Gradek said he is concerned about the airline's survival.

He said Air Transat has to address its problem of being nearly a billion dollars in debt.

“So they need to either refinance that debt, restructure it, or they might be at risk in terms of not being able to support the operations with that level of debt on their books,” he said.

In what the Air Transat spokesperson called a separate measure that’s still under review, the company is considering laying off up to 80 workers, which The Canadian Press reported on Oct. 3. Gagné told CTVNews.ca on Wednesday it was a “corporate business optimization process” that only affects provincially regulated roles, not pilots and flight attendants.

The company has faced financial challenges including fierce competition, engine recalls and the threat of a union strike over the past year, according to The Canadian Press.