An anonymous director reports

AIR CANADA ANNOUNCES PRELIMINARY RESULTS OF $800 MILLION SUBSTANTIAL ISSUER BID

Air Canada has released the preliminary results of the now-expired substantial issuer bid to purchase for cancellation up to $800-million of its Class A variable voting shares and Class B voting shares at a purchase price of not less than $29 and not more than $33 per share.

Air Canada expects to take up and pay for 27,586,206 shares at a price of $29 per share under the offer, representing an aggregate purchase price of about $800-million, for about 9.8 per cent of the total number of Air Canada's issued and outstanding shares as of Sept. 24, 2026, and before giving effect to the offer.

The offer is an important milestone in Air Canada's disciplined execution of its capital allocation framework and priorities, allowing it to complete the return of its share count to prepandemic levels. The share purchase will be financed with part of the proceeds from the minority equity investment in Aeroplan by funds managed by Blackstone and La Caisse, together with other leading Canadian institutions. Completion of the offer will also allow Air Canada to return value to shareholders while continuing to invest in its New Frontiers strategy and support one of the strongest balance sheets among its North American peers.

Shares tendered into the offer

In response to the offer, 66.8 million shares were validly deposited and not withdrawn pursuant to auction tenders at or below the purchase price and purchase price tenders. Since the offer was oversubscribed, shareholders who made auction tenders at or below the purchase price and purchase price tenders will have the number of shares purchased prorated following the determination of the final results of the offer (other than odd-lot tenders, which are not subject to proration). Air Canada currently expects that shareholders who made auction tenders at or below the purchase price and purchase price tenders will have about 41 per cent of their validly deposited shares purchased by Air Canada.

After giving effect to the offer and based on the number of issued and outstanding shares on Sept. 24, 2026, Air Canada expects to have 252,745,331 shares issued and outstanding.

Further information

The number of shares validly deposited and not withdrawn, the number of shares to be purchased, the proration factor, and the purchase price referred to above are preliminary and remain subject to verification by TSX Trust Company, as depositary for the offer. Upon take-up and payment of the shares purchased, Air Canada will release the final results, including the estimated paid-up capital per share and specified amount (each for purposes of the Income Tax Act (Canada)) and the final proration factor.

The full details of the offer are described in the offer to purchase and issuer bid circular dated Aug. 20, 2026, as well as the related letter of transmittal and notice of guaranteed delivery, copies of which were filed and are available under Air Canada's profile on SEDAR+.

This press release is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell Air Canada's shares. All dollar amounts are in Canadian dollars.

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 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. For additional information, please see Air Canada's TCFD (Task Force on Climate-related Financial Disclosures) disclosure. Air Canada shares are publicly traded on the Toronto Stock Exchange (symbol: AC).

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