Normal Course Issuer Bid of Transat A.T. Inc.

Montreal, Qc, Canada, June 8, 2005

The Board of Directors of Transat A.T. Inc. has filed notice to renew, for a 12-month period, its normal course issuer bid, which will expire on June 14, 2005. In the notice, the Corporation states its intention to purchase for cancellation up to a maximum of 3,935,000 Class A Variable Voting Shares and Class B Voting Shares, representing less than 10% of the public float of Class A Variable Voting Shares and Class B Voting Shares. As of June 3, 2005, there were 7,970,922 Class A Variable Voting Shares and 32,602,040 Class B Voting Shares issued and outstanding, of which 39,351,600 Class A Variable Voting Shares and Class B Voting Shares represent the public float.

This program is designed to allow the Corporation to purchase its shares in the normal course, when the Corporation estimates that its shares are undervalued by the Market.

These purchases are to be made through the facilities of the Toronto Stock Exchange in accordance with its policy on normal course issuer bids. The price which the Corporation will pay for repurchased shares will be the market price at the time of acquisition plus brokerage fees. Purchases may commence as of June 15, 2005 and will terminate no later than June 14, 2006.

The Corporation acquired for redemption between June 15, 2004 and March 4, 2005, a total of 230,000 Common Shares with respect to which the average redemption price paid was $21.55 per share, and no 9.00% Convertible Unsecured Subordinated Debentures due in 2007. From March 5, 2005 to the present day, the Corporation acquired for redemption 323,500 Class A Variable Voting Shares and Class B Voting Shares with respect to which the average redemption price paid was $22.98 per share.

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).