Government sells stake in Air Canada – report

The government of Canada sold its roughly 6% stake in Air Canada (AC, Montréal Trudeau) on December 11-12, The Globe and Mail newspaper reported.

Ministry of Finance spokeswoman Marie-France Faucher had already said in September that the government did not intend to be a long-term shareholder in the flag carrier. In April 2021, Ottawa invested CAD500 million Canadian dollars (USD398 million at the time) in the company’s Class B Voting shares, paying about CAD23.18 apiece. It became the airline’s biggest investor as part of a bailout package to improve the company’s finances during the COVID-19 pandemic.

According to The Globe and Mail, the government has now sold its stake at about CAD25 a share (USD17.60).

Air Canada was not immediately available for comment. The airline did not notify the transaction to the Toronto Stock Exchange.

In April 2021, as part of the support package, Air Canada had optional access to interest-bearing loans worth up to CAD5.3 billion (USD4.2 billion) through several separate credit facilities. It only used a fraction of these loans and withdrew from further financial support from the authorities in November 2021.

The loans and investment included a number of commitments, including offering refunds, protecting jobs, restarting domestic air services to remote communities, and remaining a customer of Canada’s aerospace sector.

Air Canada reported CAD2.3 billion (USD1.6 billion) in net profit for the third quarter of 2024, on operating revenue of CAD6.12 billion (USD4.3 billion).