Dec. 29, 2020
Air Canada is raising more money
On December 15, the largest Canadian airline revealed its plan to raise more money with a share offering. With this offering, the struggling airline plans to raise about $850 million to supplement its working capital and other cash needs. It also expects that the money raised with these offerings will help the company improve its cash position and allow it to implement recovery measures in the near future.
Air Canada has already lost nearly $2.8 billion in the first three quarters of 2020. The analysts expect the airline to add another slightly less than $1 billion to its 2020 losses in the fourth quarter.
In its latest press release, the company highlighted it’s burning $14 million to $16 million cash each day on an average in Q4. Previously, during its third-quarter earnings event, it gave a much lower cash burn projection range of $12 million to $14 million per day for the fourth quarter.
These factors clearly reflect how the situation seems to be getting more worrisome for Air Canada.
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