Air Canada has warned of more cash burn in the fourth quarter as spiking COVID-19 cases do more harm to air travel and the airline's liquidity, and has said that it is looking to raise approximately C$850 million ($669.45 million) in a share offering.
The airline industry is still losing billions of dollars every month due to weak travel demand, exacerbated by recent coronavirus travel advisories that have discouraged holiday travel.
Air Canada expects average net cash burn of between C$14 million and C$16 million per day in the fourth quarter, compared with its prior estimate of C$12 million to C$14 million.
An Option To Purchase Up To An Additional 15% Of Shares
The company said that it intends to grant underwriters an option to purchase up to an additional 15% of the shares in the offering, the proceeds of which will be used to bolster working capital.