Air Canada announced on May 13, 2025, the launch of a substantial issuer bid (SIB) to repurchase for cancellation up to $500 million of its Class A variable voting shares and Class B voting shares. The offer, commencing May 16, 2025, was structured as a modified Dutch auction, allowing shareholders to tender shares at prices between $18.50 and $21.00. The offer closed on June 20, 2025.

On June 25, 2025, Air Canada confirmed the completion of the SIB, having taken up and paid for 26,595,744 shares at $18.80 per share for a total of about $500 million. This represented approximately 8.24 percent of the total shares, leaving about 296.1 million shares issued and outstanding. The offer was oversubscribed, with about 26.8 million shares validly deposited. As a result, approximately 99.14 percent of successfully tendered shares were purchased, excluding odd lot tenders which were not subject to proration.

Payment and settlement for purchased shares will be completed on or before June 27, 2025. For Canadian tax purposes, shareholders are deemed to have received an $8.21 dividend per share, representing the excess of the purchase price over the estimated paid-up capital of $10.59. This dividend is designated as an eligible dividend under the Income Tax Act.