Air Canada Proclaims Closing of Providing of Shares

/ NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES, OR FOR DISTRIBUTION IN THE UNITED STATES/.

MONTREAL, December 30, 2020 / CNW Telbec / – Air Canada (TSX: AC) (the “Company”) today announced the completion of its previously announced overnight public offering of 35,420,000 Class A Voting Shares and / or Class B Voting Shares of the Company ( “Shares” known “) at a price to the public of C $ 24.00 per share for a total gross proceeds of approx. $ 850 million (the offer”).

The Company has granted the subscribers the option to acquire up to 15% of the shares in the offer, which can be exercised in whole or in part at any time up to 30 days after the date of this offer.

The Company will use the net proceeds from the Offer to supplement the Company’s working capital and for other general corporate purposes. The net proceeds from the offering will be used to increase Air Canada’s liquidity position, allowing additional flexibility both from an operational standpoint and in implementing the planned mitigation and recovery measures in response to the COVID-19 pandemic.

TD Securities Inc., JP Morgan Securities Canada Inc., Citigroup Global Markets Canada Inc. and Morgan Stanley Canada Limited are acting as active joint book-running managers for the offering.

CAUTION REGARDING FUTURE INFORMATION

This press release contains “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements relate to analyzes and other information that are based on projections of future results and estimates of amounts that cannot yet be determined. These statements may include, but are not limited to, comments on guidelines, strategies, expectations, planned operations or future actions, the Company’s expectations regarding the anticipated use of the proceeds from the Offering, and the exercise of their option by subscribers of the Purchase of up to 15% of the other shares in the offer. Forward-looking statements are identified by words and expressions such as “preliminary”, “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict” , “Project”, “Will”, “Dignity” and similar terms and expressions, including references to assumptions. Forward-looking statements are by their nature based on assumptions, including those described herein, and are subject to important risks and uncertainties. Forward-looking statements may change due to changes in, among other things External events and general business uncertainties cannot be relied upon and actual results could differ materially from those expressed in any forward-looking statements due to a number of factors including those discussed below.

air Canadais facing, along with the rest of the global aviation industry, a sharp and abrupt decline in traffic and a corresponding decline in revenue and cash flows as a result of the COVID-19 pandemic and travel restrictions imposed in many countries around the world. and especially in Canada. The effects of the COVID-19 pandemic could already be felt at the beginning of the traffic and sales figures March 2020. These effects include drastic declines in earnings and cash flow from operating activities. Given the changing government restrictions around the world and the severity of the restrictions in the world, the visibility of travel demand is very limited Canada;; These restrictions and concerns about travel due to the COVID-19 pandemic, as well as concerns and expectations of passengers about the need for certain precautionary measures, such as: Physical distancing, for example, significantly inhibits demand. The COVID-19 pandemic also has a significant economic impact, including business and consumer spending, which in turn can have a significant impact on the demand for travel. air Canada cannot predict the full impact or when conditions may improve. air Canada Is actively monitoring the situation and will respond as the effects of the COVID-19 pandemic develop. This will depend on a number of factors including how the virus has progressed, the availability of quick, effective tests, vaccinations and effective treatments for the virus, government action and passenger responses, and timing of recovery in international and business travel, which are important segments of the world Air Canada markets are none that can be predicted with certainty.

Additional factors that could cause results to differ materially from those expressed in any forward-looking statement include those identified in the Air Canada publications file available on www.sedar.com, and specifically those identified in Air Canada Section 14 “Risk Factors” Canada’s MD&A for the third quarter of 2020 and Section 20 “Risk Factors” of Air Canada MD&A for 2019. The forward-looking statements contained in this press release reflect Air Canada’s expectations as of the date of this press release (or otherwise published) and can change after this date. However, Air Canada disclaims any intention or obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by applicable securities regulations.

About Air Canada

air Canada is Canada largest national and international airline. Canada Flag Carrier is one of the 20 largest airlines in the world and served over 51 million customers in 2019. air Canada is a founding member of Star Alliance, the world’s most comprehensive air transport network. air Canada is the only international network operator in North America according to the independent British research company Skytrax, which also named Air Canada as the best airline in 2019, to receive a four-star ranking North America.

SOURCE Air Canada

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