Mr. Mark Galardo reports

AIR CANADA BRINGS THE SUN NEXT WINTER! NEW FLIGHTS TO THE CANARY ISLANDS, PLUS MORE VACATION OPTIONS FROM COAST-TO-COAST

Air Canada has added several new winter vacation destinations for the winter 2026-2027 season to its global network, including the only non-stop flights from North America to Tenerife in the Canary Islands. The airline has also added Roatan, Santo Domingo, Merida and Mazatlan as new destinations, plus several new non-stop flights to sought-after Caribbean and Mexico destinations to the airline's winter network. Flights are available for purchase now on the Air Canada website, and vacation packages will be available for purchase on the Air Canada Vacations website.

"We are further cementing Air Canada's global network as one of the most far-reaching from the North American continent. The addition of Tenerife, in the Canary Islands, reflects our continued ambition to offer our customers and Aeroplan members an exceptional, diversified array of unique Air Canada destinations. Enabled by the next-generation capabilities of our incoming A321XLR aircraft, travellers on the only non-stop service from North America now have convenient options to reach the island renowned for its stunning volcanic scenery, a rich array of bucket-list activities and year-round warm weather," said Mark Galardo, executive vice-president, chief commercial officer and president of cargo at Air Canada.

"Air Canada is also expanding flights into Latin America from Vancouver, enabled by growing A220 and Air Canada Rouge bases that unlock sought-after, non-stop service to Costa Rica and Mexico, including to Mazatlan, a new Mexican destination. In addition, we are adding Roatan, Santo Domingo and Merida to our global network, while introducing exciting new leisure options for our customers in Edmonton, Winnipeg, Quebec and Halifax. Together with our previously announced new services to Sapporo and Quito, and our new leisure options from Calgary to Mexico, Air Canada continues to deepen its industry-leading network, proudly connecting Canada globally," he concluded.

The chief executive officer of Tenerife Tourism, Dimple Melwani, said: "The arrival of Air Canada with direct flights from Toronto and Montreal is a strategic boost for Tenerife, consolidating our destination as a global leader and bringing us closer to a high-value traveller for the island. This connection with Air Canada affords us the opportunity to give Tenerife a boost in these markets with growing demand, not only as a vacation destination, but also as a global hub in strategic sectors such as business and corporate tourism, the audiovisual and cultural industries, as well as cruise tourism with multistop itineraries."

According to Ms. Melwani: "The island has spent several years working to improve its positioning in these markets, whose interest in Tenerife continues to grow, although there is still a long way to go. This direct flight makes it possible for Tenerife to reinforce our position as a gateway to Europe for North American travellers while raising the profile of our cultural, culinary and leisure offering in priority source markets on the current road map. We are confident that this connection will increase the visibility of Tenerife as a comprehensive and competitive destination over other international options."

Air Canada's Tenerife flights will be operated with the airline's brand new Airbus A321XLR aircraft featuring lie-flat seats in the business class cabin, bringing a wide-body experience to a narrow-body jet. With capacity for 182 passengers in a configuration of 14 signature class seats and 168 economy class seats, the A321XLR also marks the beginning of the next era in Air Canada's cabin interiors with the introduction of a new design standard for onboard experience.

About Air Canada

Air Canada is Canada's largest airline, the country's flag carrier and a founding member of Star Alliance, the world's most comprehensive air transportation network. Headquartered in Montreal, Air Canada provides scheduled service directly to more than 180 airports in Canada, the United States and internationally on six continents. It holds a four-star ranking from Skytrax. Air Canada's Aeroplan program is Canada's premier travel loyalty program, with more than 10 million members around the world. Members can earn or redeem points on the world's largest airline partner network of 45 airlines, plus through an extensive range of merchandise, hotel and car rental partners. Through Air Canada Vacations, it offers more travel choices than any other Canadian tour operator to hundreds of destinations around the world, with a wide selection of hotels, flights, cruises, day tours and car rentals. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using Air Canada's passenger and freighter aircraft. Air Canada's climate-related ambition includes a long-term aspirational goal of net-zero greenhouse gas emissions by 2050. Air Canada shares are publicly traded on the Toronto Stock Exchange (symbol: AC) in Canada and the OTCQX (symbol: ACDVF) in the United States.