Air Canada has announced that it is withdrawing financial support from the federal government as its financial situation has improved.
The airline says its recovery from the COVID-19 pandemic continues and is able to make progress due to improved cash flow.
Air Canada struck a $ 5.9 billion deal with Ottawa in April for an aid package that made loans available to the airline but also capped executive pay.
As part of this program, Air Canada also made a commitment to restore service at certain regional airports.
The airline says it borrowed about $ 1.2 billion under a credit facility dedicated to paying off customers, while other loans available under the program have not been used.
Air Canada indicates that “the amount used for the reimbursement of non-refundable tickets will be reimbursed by Air Canada, plus interest paid quarterly, in accordance with the terms of the agreement concluded by Air Canada”.
The aid program also allowed the federal government to buy $ 500 million in shares in the company, and Ottawa would still hold those shares, according to Air Canada.
Air Canada has also agreed to issue government share purchase warrants.
The company indicates that with the “termination of the operating credit facilities, half of these warrants, the rights of which have not yet been acquired by the government, were immediately canceled.”