Air Canada (TSX:AC) announced on Friday that it has repaid approximately $589 million in debt, which was originally procured to fund the purchase of aircraft. The repayment included a $462-million loan from Canada's Export Development Corp, utilized to finance the acquisition of 14 Airbus A220-300 aircraft.
In addition to this, the airline made a partial repayment of $127 million towards financings supported by the Export-Import Bank of the United States. The funds were initially used to purchase four Boeing (NYSE:BA) 787-8 aircraft.
In the aftermath of the pandemic, one of Air Canada's primary objectives has been to reduce debt. The company asserts that these recent repayments have not only fortified its balance sheet but also endowed it with increased flexibility for strategic investments.
In a recent financial update, Air Canada disclosed a profit of $838 million for the quarter ending June 30. This represents a significant turnaround from the same period a year earlier when the airline reported a loss of $386 million.
The news follows Air Canada's ongoing efforts to recover from the financial impact of the pandemic and strengthen its financial position. The company's actions align with its stated goal of reducing debt and making strategic investments to ensure future growth and stability.
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