Air Canada Secures Additional $909 Million in Cash

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In order to battle with the crisis provoked by the pandemic, Air Canada has raised additional $909 million (C$1.23 billion) in cash by closing two additional financing transactions.

According to a statement, since the beginning of the pandemic in March, the airline has secured a total of $4 billion (C$5.5 billion) of liquidity.

The recent financial addition has come through two transactions completed earlier in June. $621 million (C$840 million) was secured by certain real estate interests, ground service equipment, certain routes, certain airport slots and gate leaseholds.

The second transaction was completed as a private offering of one tranche of EETCs which allowed to raise additional $315 million.

“The fact Air Canada was able to add $1.23 billion to its liquidity with these last two transactions without utilizing any of its previously disclosed unencumbered assets leaves the airline in an excellent position to access additional funds should the need arise,” said Pierre Houle, Managing Director and Treasurer of Air Canada.

“We have full confidence that we will be successful in maintaining liquidity at levels more than sufficient to meet the challenges and take advantage of the opportunities ahead. With these latest transactions Air Canada has now raised approximately $4 billion (C$5.5 billion) in 2020 and expects to end the second quarter of 2020 with at least $6.4 billion (C$9 billion) in liquidity,” concluded Mr. Houle.