Air Canada Repays Government Loans of $650M for Airbus Aircraft Purchase

In a significant move towards its post-pandemic financial goals, Air Canada announced on Wednesday that it has fully prepaid loans of around $650M provided by the government’s export credit agency. These loans were originally utilized by the airline to facilitate the acquisition of 19 Airbus A220-300 aircraft.

Air Canada’s CFO, Amos Kazzaz, highlighted the importance of deleveraging the company’s balance sheet in the aftermath of the COVID-19 crisis. “Prepaying the loans received for our A220 aircraft represents a significant step in achieving this objective,” stated Kazzaz in a press release.

Moreover, this prepayment has resulted in the inclusion of the 19 aircraft into Air Canada’s unencumbered asset pool, which now stands at approximately $5.4B (excluding Aeroplan). This development further strengthens the airline’s financial position and underscores its commitment to restoring stability and growth in the aviation industry.