Transat A.T. Inc. to Redeem Remaining $50.4 million in 9% Convertible Debentures

Montreal, Qc, Canada, March 24, 2005

Transat A.T. Inc. announces that it is issuing today a redemption notice to holders of its $50.4 million 9% Convertible Unsecured Subordinated Debentures due March 1, 2007, in accordance with the Indenture between Transat and Computershare Trust Company of Canada dated as of February 19, 2002, as amended on March 4, 2005. The redemption date will be April 25, 2005. The redemption will amount to $1,013.56 for each $1,000 principal amount of Debentures, including all accrued and unpaid interest thereon to but excluding the redemption date.

Holders of the debentures are reminded that they have the right to convert their debentures pursuant to article 4 of the Indenture prior to the close of business on the business day immediately preceding the redemption date by duly completing the Conversion and Declaration Notice and delivering same at the place of business of Computershare Trust Company of Canada.

Transat A.T. Inc. with its head office in Montreal is an integrated company specializing in the organization, marketing, and distribution of holiday travel. The core of its business consists of tour operators in Canada and France. Transat is also involved in air transportation, value-added services at travel destinations, as well as in distribution through travel agency networks. Transat is listed on the Toronto Stock Exchange (TSX:TRZ.B; TRZ.RV.A).