Air Canada latest to forewarn more cash burn; looks to raise C$850 mln

Air Canada said on Tuesday it looks to raise about C$850m 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, Delta and American Airlines also raised their cash burn expectations earlier this month. Air Canada expects average net cash burn of between C$14m and C$16m per day in Q4, compared with its prior estimate of C$12m to C$14m. 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. <br/>