Air Transat and its flight attendants, represented by the Canadian Union of Public Employees (CUPE), have reached a pact that amends the collective agreement signed in November 2010.

In the wake of initiatives adopted by Transat last fall aimed at hastening a return to profitability, the agreement calls for a deferment of planned wage increases and a variable compensation formula.

“We are happy with this agreement and we salute the openness shown by Air Transat’s employees and their union representatives,” said Transat A.T. Inc. President and Chief Executive Officer Jean-Marc Eustache. “We are continuing to implement the plan announced in late 2011 to return to profitability and all our teams are engaged in attaining this goal.”

Transat A.T. Inc. is an integrated international tour operator with more than 60 destination countries and that distributes products in over 50 countries. A holiday travel specialist, Transat operates mainly in Canada and Europe, as well as in the Caribbean, Mexico and the Mediterranean Basin. Montreal-based Transat is also active in air transportation, accommodation, destination services and distribution. (TSX: TRZ.B, TRZ.A)