MONTREAL, Sept. 10, 2015 /CNW Telbec/ - Air Canada announced today that since commencing its normal course issuer bid on May 29th, 2015, it has purchased, for cancellation, a total of 3,185,735 Class A variable voting shares and Class B voting shares (collectively the "Shares") at an average Share price of $11.53 for an aggregate consideration of $36.7 million. Since August 17th, 2015, the day Air Canada's quarterly internal black out period ended after the release of its Second Quarter financial results, it has purchased, for cancellation, 3,085,735 Shares at an average Share price of $11.46 for an aggregate consideration of $35.4 million. Air Canada announced the implementation of a normal course issuer bid on May 26th, 2015 to purchase, for cancellation, up to 10 million Shares representing approximately 3.49 per cent of the 286,846,898 Shares outstanding as at May 14th, 2015.
Air Canada believes that, from time to time, the market price of its Shares may not fully reflect the underlying value of its business and future prospects. In such circumstances, Air Canada may purchase for cancellation outstanding Shares, thereby benefitting all shareholders by increasing the underlying value of the remaining Shares.
"The markets have been extremely volatile over the last several weeks due to a number of macro-economic factors, yet we continue to be very positive about Air Canada's future prospects. We continue to see good value for shareholders in purchasing our shares through the normal course issuer bid and continue to believe, as we previously said, that a modest normal course issuer bid is consistent with our capital allocation strategy and shareholder expectations," said Calin Rovinescu, President and Chief Executive Officer of Air Canada.
Air Canada is Canada's largest domestic and international airline serving more than 190 destinations on five continents. Canada's flag carrier is among the 20 largest airlines in the world and in 2014 served more than 38 million customers. Air Canada provides scheduled passenger service directly to 64 Canadian cities, 52 destinations in the United States and 78 cities in Europe, the Middle East, Asia, Australia, the Caribbean, Mexico, Central America and South America. Air Canada is a founding member of Star Alliance, the world's most comprehensive air transportation network serving 1,321 airports in 193 countries. Air Canada is the only international network carrier in North America to receive a Four-Star ranking according to independent U.K. research firm Skytrax. For more information on Air Canada visit aircanada.com, follow @AirCanada on Twitter and join Air Canada on Facebook.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release includes forward-looking statements within the meaning of applicable securities laws. Forward-looking statements relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These statements may involve, but are not limited to, comments relating to preliminary results, guidance, strategies, expectations, planned operations or future actions. Forward-looking statements are identified by the use of terms and phrases such as "preliminary", "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions.
Forward-looking statements, by their nature, are based on assumptions, including those described herein and are subject to important risks and uncertainties. Forward-looking statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including without limitation, industry, market, credit, economic and geopolitical conditions, currency exchange, the ability to reduce operating costs and secure financing, energy prices, interest rates, competition, employee and labour relations, pension issues, war, terrorist acts, epidemic diseases, environmental factors (including weather systems and other natural phenomena and factors arising from man-made sources), insurance issues and costs, changes in demand due to the seasonal nature of the business, supply issues, changes in laws, regulatory developments or proceedings, pending and future litigation and actions by third parties as well as the factors identified throughout this news release and those identified in section 18 "Risk Factors" of Air Canada's 2014 MD&A dated February 11, 2015. The forward-looking statements contained in this news release represent Air Canada's expectations as of the date of this news release (or as of the date they are otherwise stated to be made), and are subject to change after such date. However, Air Canada disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.
SOURCE Air Canada