(Reuters) - Air Canada said on Tuesday it looks to raise about C$850 million ($669.45 million) in a share offering, after it 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.
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.
United Airlines, Delta Air Lines (NYSE:DAL) and American Airlines (NASDAQ:AAL) also raised their cash burn expectations earlier this month.
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.
The company said 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.
($1 = 1.2697 Canadian dollars)