Mr. Mark Galardo reports

AIR CANADA AND EMIRATES TO EXTEND STRATEGIC PARTNERSHIP WITH MAJOR, MULTI-YEAR EXPANSION AGREEMENT

Air Canada and Emirates have formed a commitment to expand and extend their strategic partnership, building on the success of a three-year-old agreement between two of the world's leading airlines. Since launching their strategic partnership in 2022, the airlines have already served more than 550,000 customers, connecting travellers across 56 code share routes linking Canada, the United States, Dubai and key destinations around the globe. The carriers have signed a memorandum of understanding to extend the reciprocal code share and loyalty partnership until Dec. 31, 2032. The renewed agreement will deepen their co-operation, lead to enhanced services for customers and cargo shippers, and create the potential for new gateways within Canada in the code share network.

"Air Canada's partnership with Emirates has been highly successful, and we are proud to renew it early, expanding its scope and extending its duration through 2032. This agreement strengthens our international strategy by supporting our daily, year-round service between Toronto and Dubai, and providing customers and shippers seamless connections to destinations across the Indian subcontinent, the Middle East and Southeast Asia. Renewing this partnership is great news, not just for our customers -- many of whom have family, cultural or business ties to these regions -- but also for Canada, as it enhances our ability to connect the country to the world amid evolving trade and travel patterns," said Mark Galardo, executive vice-president and chief commercial officer and president, cargo, at Air Canada.

"Our strategic partnership with Air Canada has delivered exceptional results, and we are pleased to extend this collaboration through 2032. This agreement strengthens our passenger and cargo capabilities, enabling us to enhance customer experiences on code share flights while expanding network connectivity for travellers across both markets," said Adnan Kazim, deputy president and chief commercial officer at Emirates.

"Beyond passenger services, we recognize the vital role air connectivity plays in fostering economic growth. Since establishing our code share partnership in 2022, we have witnessed consistent trade expansion between the UAE and Canada. Through enhanced cargo co-operation, we remain committed to facilitating commerce and contributing to the continued prosperity of both economies. We believe this partnership will serve as a catalyst for strengthening our footprint in Canada and unlocking new opportunities for growth."

Air Canada-Emirates strategic partnership

The enhanced partnership between Emirates and Air Canada is poised to significantly strengthen tourism and trade between both countries. The collaboration will increase passenger choice and enable expanded cargo co-operation that will facilitate bidirectional cargo flow between the Americas, the Middle East and Indian subcontinent. Both airlines are also exploring a potential joint venture focused on cargo operations to support the efficient movement of commodities globally.

The extended agreement will enhance the customer experience through improved priority benefits for eligible passengers and operational coordination between both airlines, including ensuring a seamless move of operations to Dubai World Central -- Al Maktoum International Airport (DWC) (expected after 2032). Since its inception, the partnership has grown consistently, with the code share network expanding to 56 routes that connect Emirates customers to 37 destinations throughout Canada and the U.S., including several new routes that were added this summer: Air Canada-operated services from Toronto to Minneapolis, Montreal to Calgary and Vancouver to Los Angeles. Air Canada also places its code on 19 routes operated by Emirates to the Indian subcontinent, Middle East and Southeast Asia. In addition to flights under the code share agreement, Emirates and Air Canada's interline partnership also provides customers with access to over 225 destinations worldwide.

"Partnerships are one of the most powerful engines of growth in our business, and our collaboration with Emirates is a perfect example. Since launching in 2022, more than half a million customers, almost 500 every single day, have seamlessly connected across our combined networks. What makes this partnership so compelling is the ease and breadth of the experience: more routing choice, reciprocal loyalty benefits, lounge access for eligible customers, and smooth interline and code share journeys. With this renewed agreement, we're taking it even further by enhancing the customer experience, expanding access to more airports, and unlocking loyalty redemptions across all cabins," said Mary-Jane Lorette, vice-president of international affairs, network and partnerships, at Air Canada.

Since the initial agreement in November, 2022, Air Canada relocated its Dubai operation to Dubai International's flagship Terminal 3. The co-location of operations in one of the world's premier terminals has significantly enhanced the connection experience and provides eligible Air Canada customers access to Emirates' signature business class lounges and other hub facilities in Dubai prior to their flight. The two airlines also offer frequent flyer members joint loyalty program benefits. Aeroplan members can benefit from earning and redeeming points on all flights operated by Emirates -- with access to more than 140 destinations across six continents -- via the airline's home and hub, Dubai. Emirates Skywards members can earn and redeem miles on all flights operated by Air Canada, accessing a network of more than 220 destinations worldwide. The carriers also have plans to reciprocally expand redemptions to each other's Premium Economy cabins, unlocking the ability for eligible Skywards and Aeroplan members to earn and redeem in all cabins operated by Air Canada and Emirates, respectively.

Air Canada currently operates daily Boeing 787 Dreamliner service between Toronto and Dubai. From Dubai, Emirates offers daily services to Toronto onboard its popular flagship A380 aircraft. The world's largest international airline also operates seven weekly flights between Dubai and Montreal, utilizing its other widebody aircraft -- the Boeing 777. Customers flying on the carriers can plan their travel itineraries to global destinations, with seamless connectivity.

Canada-UAE trade

Air connectivity is a key driver of Canada-UAE trade. Bilateral trade grew 14 per cent between 2022 and 2023, with Canadian exports reaching $3.3-billion in 2024 -- a 17-per-cent increase over 2023. As a major global logistics hub and driver of tourism, Dubai supports Canadian businesses by facilitating trade, investment and tourism across the Middle East, Indian subcontinent and beyond.

About Air Canada

Air Canada is Canada's largest airline, the country's flag carrier and a founding member of Star Alliance, the world's most comprehensive air transportation network. Air Canada provides scheduled service directly to more than 180 airports in Canada, the United States and internationally on six continents. It holds a four-star ranking from Skytrax. Air Canada's Aeroplan program is Canada's premier travel loyalty program, where members can earn or redeem points on the world's largest airline partner network of 45 airlines, plus through an extensive range of merchandise, hotel and car rental partners. Through Air Canada Vacations, it offers more travel choices than any other Canadian tour operator to hundreds of destinations worldwide, with a wide selection of hotels, flights, cruises, day tours and car rentals. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using Air Canada's passenger and freighter aircraft. Air Canada's climate-related ambition includes a long-term aspirational goal of net-zero greenhouse gas emissions by 2050. For additional information, please see Air Canada's TCFD disclosure. Air Canada shares are publicly traded on the TSX in Canada and the OTCQX in the United States.