June 7, 2023

The Queens County Citizen

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Economic recovery: Air Canada withdraws its assistance plan with Ottawa

Economic recovery: Air Canada withdraws its assistance plan with Ottawa

Air Canada struck a $ 5.879 billion aid deal with the federal government last April, but the airline announced on Friday that it was withdrawing financial assistance from Ottawa as its cash flow improved.

Also read: Air Canada wants to switch to green fuel

Air Canada and the government provided access to interest-bearing loans of up to $ 5.375 billion, under the Emergency Credit for Large Owners, as well as a $ 500 million share offering for a total of $ 5,875. Billion in cash.

To date, Air Canada has only used the facility intended to reimburse customers for non-refundable tickets, while a total of $ 3.975 billion in other facilities have not been used.

“Air Canada continues to recover from COVID-19. We are recalling employees, adding new links to our network, upgrading frequencies, restoring services and closing $ 7.1 billion in financing last quarter, ”said Michael Rousseau, President and Chief Executive Officer in a press release.

According to Air Canada, these financing transactions provided substantial liquidity to Air Canada and deferred loan maturities until almost the end of the decade.

When releasing its third quarter results on November 2, 2021, Air Canada stated that its unlimited cash as of September 30, 2021 was approximately $ 14.4 billion.

Also, despite the $ 67 million negative, revenues improved before interest, taxes and depreciation and amortization (EBITDA) increased by $ 487 million, compared to a negative result of $ 554 million for the third quarter of 2020.

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