Air Canada has completed an $800 million share buyback that will reduce the airline’s outstanding share count below pre-pandemic levels.
The Montréal-based carrier said it took up and paid for 27,586,206 Class A variable voting and Class B voting shares at $29 per share under the substantial issuer bid.
The transaction represents about 9.8 per cent of Air Canada’s outstanding shares as of September 24, before the offer took effect.
After the cancellation, approximately 252.7 million shares remain outstanding.
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What Air Canada’s buyback means
Air Canada said the completed transaction is part of its long-term capital allocation priorities.
A buyback reduces the number of shares in circulation, which can increase the ownership percentage represented by each remaining share.
The move does not directly change flight schedules, fares or Aeroplan benefits for travellers.
It is a corporate-finance decision aimed at returning capital to shareholders while managing the company’s overall share count.
Air Canada’s latest announcement completes a process that began with an offer to repurchase up to $800 million of shares at a price between $29 and $33 per share.
Why the airline moved ahead with the offer
Air Canada has pointed to stronger cash generation and a focus on balance-sheet management as it rebuilds its financial position.
In its second-quarter results, the airline reported operating revenue of $6.266 billion, up 11 per cent from a year earlier.
It also generated $651 million in cash from operating activities and $174 million in free cash flow during the quarter.
Air Canada had already spent $125 million repurchasing more than six million shares during the second quarter.
The newly completed offer is substantially larger and brings the company’s share count below the level recorded before the COVID-19 pandemic.
The financial results also showed the pressures facing the airline.
Air Canada reported a second-quarter operating loss of $215 million and a net loss of $178 million, while adjusted earnings before interest, taxes, depreciation, amortization and impairment reached $719 million.
The company said labour-related and other charges contributed to the operating loss, while fuel expenses rose sharply year over year.
Updated 2026 financial outlook
Air Canada reinstated and updated its full-year 2026 guidance in August after suspending earlier guidance in April because of uncertainty around fuel prices.
The airline now expects adjusted EBITDA of between $2.9 billion and $3.2 billion for 2026.
It is also forecasting a 2.25 per cent to 3.25 per cent increase in available seat capacity compared with 2025.
Air Canada’s updated outlook assumes free cash flow of between $200 million and $500 million for the year.
It also expects adjusted cost per available seat mile to rise by between 5 per cent and 6 per cent from 2025.
The airline has warned that fuel prices, currency movements, geopolitical developments, tariffs, labour relations and travel demand could affect its results.
What happens next for Air Canada
With the buyback now complete, Air Canada’s next major financial test will be its ability to deliver on its revised 2026 guidance while continuing to fund fleet, network and customer-service investments.
The airline is also preparing for a leadership transition.
Anko van der Werff is scheduled to become president and chief executive officer by the end of January 2027, succeeding Michael Rousseau.
Air Canada has separately announced a major international network expansion for summer 2027, including five new international destinations, seven new routes and increased service in selected markets.
Those growth plans will need to be balanced against higher operating costs and an uncertain international environment.
The completed buyback gives shareholders a clearer measure of the company’s capital-return strategy, but it does not remove the operational risks facing the airline.
What the announcement means for passengers
For travellers, the share buyback does not create an immediate change to bookings or airport operations.
Passengers should continue to rely on their booking details, flight-status information and Air Canada’s travel updates for changes involving routes, delays, cancellations or rebooking policies.
The more direct customer-facing developments remain the airline’s network expansion, fleet renewal, labour agreements and any changes to fares, fees or loyalty-program rules.
Passengers may also see savings from the airline’s ticket fee changes.
Frequently Asked Questions
How much did Air Canada spend on the share buyback?
Air Canada spent approximately $800 million to buy back and cancel 27,586,206 shares at $29 per share.
How many Air Canada shares remain outstanding?
Approximately 252.7 million shares remain outstanding after the substantial issuer bid was completed.
Will the buyback change Air Canada flight prices or schedules?
No immediate changes to fares, schedules or bookings were announced. The transaction is a shareholder-return and capital-allocation decision.
Why do companies buy back their own shares?
A buyback reduces the number of shares in circulation and can increase the ownership percentage and earnings exposure represented by each remaining share.
What is Air Canada forecasting for 2026?
Air Canada expects adjusted EBITDA of $2.9 billion to $3.2 billion, capacity growth of 2.25 per cent to 3.25 per cent and free cash flow of $200 million to $500 million in 2026.
Fact-Checked: Key transaction, share-count, financial and guidance details were checked against Air Canada’s official September 28, 2026 release and second-quarter 2026 financial-results release. ([aircanada.com](https://www.aircanada.com/media/air-canada-completes-800-million-substantial-issuer-bid/))
Disclaimer: Financial information is provided for news and general information only and is not investment advice.