Air Canada (AC) said Wednesday it will sell a 25% stake in its Aeroplan loyalty program to Blackstone and three Canadian pension funds for C$2.5 billion. The announcement sent the airline’s shares up 12% to close at C$30.61 in Toronto, the highest level since early 2020.
Blackstone and the Caisse de dépôt et placement du Québec are leading the buyer group, with the Public Sector Pension Investment Board and British Columbia Investment Management Corp. also participating. Air Canada reacquired Aeroplan in 2019 for less than C$500 million; the deal implies a valuation of C$10 billion for the program. The carrier will retain full control of day-to-day operations. Outgoing chief executive Michael Rousseau said the transaction will not alter how members earn or redeem points, and the company has no intention of giving up control of what it considers a strategic asset.
Air Canada plans to use the proceeds to repay C$1.7 billion in bonds and repurchase up to C$800 million in shares in September. The sale is expected to close Monday.
The announcement came as the airline reported a net loss of C$178 million for the quarter ended June 30, compared with a profit of C$186 million a year earlier. Fuel costs were the main driver. Chief financial officer John Di Bert said roughly half of second-quarter tickets were sold before the Middle East conflict escalated in late February. The airline then had to operate those flights at higher jet fuel prices, while half of passengers had not paid fares reflecting the increased costs. That created a non-recoverable headwind of C$500 million to C$600 million for 2026.
Air Canada lowered its full-year outlook. It now expects adjusted earnings of C$2.9 billion to C$3.2 billion for 2026, down from a previous forecast of C$3.35 billion to C$3.75 billion. Capacity growth will be slower than initially expected, and free cash flow may fall to between C$200 million and C$500 million, as much as half the earlier forecast. Demand remains intact, Rousseau said, with corporate and premium bookings especially strong. Second-quarter revenue rose 11% to C$6.27 billion, and adjusted diluted earnings per share came in at 40 cents, above analyst expectations of 13 cents.
The sale marks Rousseau’s final major move before he steps down at the end of the month; the incoming chief executive is set to take over five months later. Analysts viewed the terms positively. The agreement gives Air Canada the right to repurchase the minority stake in five to eight years, with investors guaranteed a return of 6.5%, described as attractive for the airline.
