Ms. Valerie Durand reports

AIR CANADA AND AIRBUS LAUNCH JOINT INITIATIVE TO SCALE DOMESTIC CANADIAN SAF AND HELP REDUCE THE LIFE-CYCLE EMISSIONS OF CORPORATE TRAVEL

Air Canada and Airbus are uniting their shared commitment to aviation decarbonization. To lead the way in advancing these goals, the two aviation pioneers are proud to announce their intent to establish a jointly financed sustainability co-investment platform. This agreement states a shared objective to invest up to approximately $13.7-million (Canadian) ($10-million (U.S.)), through the platform to support a commercial-scale sustainable aviation fuel (SAF) industry in Canada. Both companies are confident that, with a supportive public policy framework in place, this investment can serve as a catalyst for the broader Canadian SAF ecosystem.

Key focus areas include accelerating a jointly agreed Canadian SAF project toward a final investment decision (FID). While Air Canada and Airbus intend to drive this investment, both companies look forward to continuing their constructive collaboration with government partners to establish the right structural frameworks to support SAF production to emerge at scale in Canada. Their continuing joint advocacy alongside the Canadian Sustainable Aviation Fuel Coalition (C-SAF) reflects a shared commitment to working with federal and provincial governments. By aligning industry initiatives with supportive public policy mechanisms, they can successfully champion domestic SAF production and price competitiveness, with the objective to make renewable fuels available for the Canadian aerospace industry and to preserve affordability of air travel.

"Air Canada is proud to help advance aviation's energy transition in Canada. Through this joint initiative with Airbus, we are taking meaningful steps toward supporting domestic SAF production, helping corporate customers address the emissions associated with business travel and contributing to a lower-carbon path for the industry. With continued industry collaboration and a supportive policy environment, we are confident this momentum can accelerate," said Valerie Durand, vice-president, airport affairs, corporate real estate and sustainability, at Air Canada.

"I want to thank Air Canada for this very important joint sustainability initiative. Decarbonizing aviation will require deep industry collaboration and decades of investment in new sources of renewable energy. By launching this co-investment platform and making a long-term commitment to Air Canada's leave less travel program, we will help to stimulate the production of, and demand for, SAF in Canada. The country has a vast feedstock potential. When combined with a supportive policy framework, it can contribute to the sector's decarbonization ambitions and create significant economic growth and job creation," said Julie Kitcher, Airbus chief sustainability officer and communications.

Climate solution for corporate travel

Complementing this foundational investment, the initiative introduces a vehicle for corporate partners to stimulate domestic SAF demand through Air Canada's leave less travel program. Demonstrating its commitment, Airbus has signed a long-term, five-year leave less travel program agreement. As part of this parallel corporate travel partnership, which distributes verified SAF environmental attributes to participants, Airbus will purchase SAF environmental attributes associated with over 60,000 litres of SAF for its first allocation. Through this program, Air Canada will track Airbus's greenhouse gas (GHG) emissions associated with its corporate travel and remove verified SAF environmental attributes on the company's behalf. Although in-sector emissions reductions are not a substitute for direct emissions reductions at the source, this corporate partnership is a key tool in supporting the scaling up of SAF and will allow Airbus to lower life cycle emissions associated with their employees' business travel.

The use of renewable fuels, such as SAF, complements Air Canada's extensive fleet modernization strategy, featuring more fuel-efficient aircraft like the long-range narrow-body Airbus A321XLR and the Canada-built Airbus A220. Air Canada and Airbus fully support the aviation aspirational climate ambition set by IATA, ATAG and ICAO to reach "net-zero carbon emissions by 2050," with SAF as a critical component to such pathway.

Multibillion-dollar economic potential

Beyond the reduction of life cycle emissions, developing a robust domestic SAF ecosystem could trigger a massive ripple effect across the Canadian economy. The strategic platform arrives alongside a new macroeconomic study by Airbus and ICF, highlighting Canada's significant potential to lead in aircraft biofuels production.

The study reveals that scaling domestic SAF to meet 40 per cent of Canada's aviation fuel demand by 2040 could add $32-billion to the national GDP and create 140,000 jobs across agricultural, forestry and urban regions. By establishing a solid platform for corporate investment and support, the Air Canada and Airbus partnership serves as an immediate catalyst to support these multibillion-dollar economic returns while advancing the development of a domestic SAF ecosystem. Consult the full report on the Airbus website.

Sustainable aviation fuel (SAF) is an industry term used to reference a family of alternative synthetic aviation fuels. It is a type of non-conventional jet fuel made from resources that can be regenerated, also known as renewable feedstocks. It is chemically similar to conventional aviation fuel but comes from non-fossil sources, making it a lower-carbon alternative over the complete fuel life cycle.

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 worldwide. Members can earn or redeem points on the world's largest airline partner network of more than 50 airlines, plus through an extensive range of merchandise, hotel and car rental partners. Through Air Canada Vacations, it offers a selection of vacation and flight and hotel packages, tours, cruises, car rentals, and experiences. 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).