Air Transat

Early years (1986–1999)

François Legault founded Air Transat with other business partners such as Jean-Marc Eustache, Philippe Sureau, Lina de Cesare, Yvon Lecavalier, and Pierre Ménard.

Air Transat made its inaugural flight on 14 November 1987, from Montreal to Acapulco with a Lockheed L-1011. By April 1988, Air Transat expanded its operations at the Toronto Pearson International Airport, and in May 1988, it completed its very first transatlantic flight between Montréal–Mirabel Airport and Paris-Orly Airport.

In December 1990, the fleet consisted of five L-1011 aircraft. In 1992, three Boeing 727-200s were added.

In 1993, Air Transat assumed defunct Nationair's maintenance base and aircraft.

On 13 March 1997, François Legault left his role as President and Chief Executive Officer of the Air Transat subsidiary, surprising financial markets, the industry, and its partners. The primary reason for his departure was a conflicting vision with his two main partners, Jean-Marc Eustache and Philippe Sureau, regarding the pace of the company's expansion. He sold his shares for an estimated $19 million, before entering politics.

Expansion (2000–2020)

In February 2005, Air Transat relocated its activities from Montréal–Mirabel Airport and officially inaugurated its operational facilities in the Montréal–Trudeau airport zone.

On 13 February 2009, Transat A.T. announced a five-year partnership with CanJet. From 1 May 2009, Transat Tours Canada chartered CanJet's Boeing 737 aircraft flying from Canadian cities to various destinations. This replaced an agreement with Calgary-based WestJet.

On 13 February 2011, Air Transat Flight TS163 operated with the airline's first all-female flight crew from Cancun to Vancouver.

On 12 September 2013, Air Transat struck a seasonal lease deal with Air France–KLM leisure carrier Transavia France, covering the lease of up to nine Boeing 737-800s by 2019. The deal, which extended a 2010 winter capacity agreement, called for Transavia France to lease four 737-800s to Air Transat during winter 2014, five in 2016, six in 2017, seven in 2018, and eight in 2019.

In March 2016, Air Transat's head office in Saint-Laurent, Montreal was named among the greenest head offices in North America according to Corporate Responsibility magazine.

In May 2017, Air Transat and Flair Airlines were accused by a CBC News story of misleading customers and regulators in Canada and Mexico by marketing and selling nonstop tickets between Edmonton and Cancun. CBC uncovered a letter in which the airlines admitted that they would frequently divert for a technical stop to refuel.

In January 2020, Forbes Canada named Air Transat in its list of best employers, to eighth place nationally.

On 17 July 2020, during the delivery of two new Airbus A321LR aircraft from Hamburg to Montreal, Air Transat made history by completing two flights powered by a kerosene blend containing 10% sustainable aviation fuel (SAF), a first for both the Canadian airline and the Airbus facility.

COVID-19 pandemic (2020–2021)

On 18 March 2020, the airline announced a phased grounding of all its flights amidst the COVID-19 pandemic. It halted new ticket sales to dedicate its resources entirely to repatriating an estimated 65,000 customers, working closely with the Canadian government. By 1 April 2020, the carrier had completely suspended all flight operations, forcing the temporarily lay off roughly 70% of its staff, i.e., about 3,600 employees, including the entirety of flight crews. This total shutdown was unavoidable given the airline's reliance on the leisure travel market, which was severely disrupted by international border closures and restrictions on non-essential travel.

The airline opted to provide customers with travel credits rather than cash refunds, a decision that drew sharp criticism from various consumer protection groups. British consumer site MoneySavingExpert named Air Transat as one of the worst-performing travel firms for refunding passengers whose flights or trips were cancelled. The United Kingdom's Civil Aviation Authority (CAA), in a report examining the impact of COVID-19 on airline carriers' treatment of passengers to and from the UK during the pandemic, found that Air Transat was one of the airlines failing to provide cash refunds to passengers whose flights had been cancelled by the airline, in breach of the Flight Compensation Regulation. The regulation requires airlines to refund passengers whose flights are cancelled under any circumstances, including the COVID-19 pandemic; the report also noted that CAA's inquiries, while preparing the report, had resulted in Air Transat assuring it that all cash payments would henceforth be handled properly.

On 23 July 2020, Air Transat launched a gradual and limited flight schedule following a 112-day grounding.