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

Montreal, June 8, 2006

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, 2006. In the notice, the Corporation states its intention to purchase for cancellation up to a maximum of 3,270,939 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 2, 2006, there were 3,712,770 Class A Variable Voting Shares and 30,055,388 Class B Voting Shares issued and outstanding, of which 32,709,392 Class A Variable Voting Shares and Class B Voting Shares represent the public float.

This program is designed to allow the Corporation to make proper utilization of its excess of cash. 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, 2006 and will terminate no later than June 14, 2007.

The Corporation acquired for redemption between June 15, 2005 and June 7, 2006, a total of 11,100 Class A Variable Voting Share and 746,500 Class B Voting Shares with respect to which the average redemption price paid was $21.17 per Class A Variable Voting Share and $19.85 per Class B Voting Share. In addition and in response to the Corporation’s offer to purchase Common Shares under a Share Issuer Bid, the Corporation took up 1,780,797 Class A Variable Voting Shares and 4,662,502 Class B Voting Shares at a purchase price of $19.40 per share on or about January 3, 2006.

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 until June 14, 2006 and TRZ.A thereafter).