Canada Sells Stake in Air Canada After Pandemic Bailout
The Canadian government sold its roughly 6% stake in Air Canada on December 11-12, 2024, following a bailout investment made during the COVID-19 pandemic. According to The Globe and Mail, the government sold its shares at about CAD 25 each (USD 17.60), a slight increase from the CAD 23.18 per share it paid in April 2021 when it invested CAD 500 million (USD 398 million) in the airline’s Class B Voting shares.
In a statement made earlier in September, Ministry of Finance spokeswoman Marie-France Faucher confirmed that the government did not intend to remain a long-term shareholder in the flag carrier. The investment had been part of a broader bailout package designed to help Air Canada recover from the financial strain caused by the pandemic.
The government’s stake in the airline was acquired as part of a rescue deal that also included optional interest-bearing loans worth up to CAD 5.3 billion (USD 4.2 billion) through multiple credit facilities. While Air Canada utilized only a portion of these loans, it withdrew from further financial support in November 2021, as the airline began to recover.
The agreement with the Canadian government included a series of commitments from Air Canada, including refunding customers for canceled flights, protecting jobs, restarting domestic air services to remote communities, and continuing its relationship with Canada’s aerospace sector.
Air Canada reported a strong financial performance in the third quarter of 2024, posting a net profit of CAD 2.3 billion (USD 1.6 billion) on operating revenues of CAD 6.12 billion (USD 4.3 billion). Despite this financial success, the airline did not comment on the transaction, and the deal was not immediately announced to the Toronto Stock Exchange.
Related News : https://airguide.info/?s=Air+Canada
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com