Air Canada finalizes terms of $800 million substantial issuer bid

Air Canada has finalized the terms of its previously announced substantial issuer bid (the “offer”) under which it will offer to purchase for cancellation up to $800 million of its Class A variable voting shares and Class B voting shares (collectively, the “shares”).1

The offer will proceed by way of a “modified Dutch auction”, allowing shareholders to tender all or a portion of their shares at a price ranging from $29.00 to $33.00 per share, in increments of $0.10 per share. The offer will be for up to 27,586,206 shares, or about 9.8% of Air Canada’s 280,167,997 total issued and outstanding shares, assuming full participation and a purchase price equal to the minimum purchase price per share. The offer is expected to commence on Aug. 20, 2026 and to expire at 11:59 p.m. (Eastern time) on Sept. 24, 2026, unless extended, varied or withdrawn by Air Canada.

The offer allows Air Canada to purchase its shares for cancellation at currently attractive valuations while maintaining its priority of investing in its growth and maintaining balance sheet strength.

Air Canada will fund any share purchases under the offer using part of the proceeds from the recently announced minority equity investment in Aeroplan by funds managed by Blackstone and La Caisse, together with other leading Canadian institutions, which have today been received in full.