Air Canada announces USD1.8bn minority equity investment in Aeroplan

Air Canada announced (11-Aug-2026) funds managed by Blackstone and La Caisse, together with other leading Canadian institutions, are making a CAD2.5 billion (USD1.80 billion) minority equity investment in Aeroplan. Details include:

• The transaction terms provide that the investor group is acquiring a 25% non-controlling equity interest in Aeroplan, valuing the programme at CAD10 billion (USD7.18 billion);
• Air Canada will maintain full operational control of Aeroplan and a controlling ownership interest after the minority investment;
• Proceeds from this investment will be used toward the repayment of Air Canada's upcoming USD1.2 billion bond maturity, strengthening Air Canada's balance sheet through a reduction in gross indebtedness without a corresponding reduction in cash and cash equivalents. Most of the balance to be applied to accelerate the share repurchases contemplated in its long-term strategic plan;
• This investment includes customary minority investor rights. Air Canada will retain control of Aeroplan's strategy, operations, and day-to-day management. Air Canada will continue to consolidate Aeroplan in its consolidated financial statements and this investment will be reflected as a non-controlling interest within shareholders' equity;
• Air Canada also intends to conduct a substantial issuer bid to purchase for cancellation up to CAD800 million (USD574.65 million) of its Class A variable voting shares and Class B voting shares. The terms and pricing of the proposed offer are expected to be determined soon after the planned settlement of the Aeroplan minority investment on 17-Aug-2026. The proposed offer would thereafter be launched with a view to being completed in Sep-2026. Air Canada intends to fund the proposed offer with proceeds from the investment in Aeroplan. [more - original PR]