Mr. Mark Galardo reports

A NEW ERA IN CUSTOMER COMFORT AND NETWORK GROWTH BEGINS AS AIR CANADA RECEIVES ITS FIRST AIRBUS A321XLR

Air Canada has taken delivery in Hamburg of its first Airbus A321XLR, a next-generation single-aisle aircraft designed to fly longer routes efficiently and with greater passenger comfort. The arrival of this aircraft, leased from SMBC Aviation Capital, marks an important milestone in Air Canada's fleet renewal and growth strategy, with a total of 30 A321XLR aircraft (15 will be leased, and 15 are being acquired directly from Airbus SAS) expected to enter the fleet over the coming years.

"Air Canada is building one of the most modern and capable fleets in the industry. The Airbus A321XLR introduces a dynamic new component to Air Canada's growth strategy, greatly expanding our flexibility to launch new international routes and improve our offering on existing markets. Equipped with a quieter, more comfortable cabin when compared to previous generation aircraft, this game-changing aircraft will shortly be deployed across the Atlantic from Montreal and Toronto, while also becoming a staple on key North American transcontinental markets," said Mark Galardo, executive vice-president, chief commercial officer and president of cargo at Air Canada. "Supporting our fleet modernization, continued network growth and an elevated on-board experience, the arrival of the Airbus A321XLR marks a transformative moment for Air Canada."

"SMBC Aviation Capital is delighted to deliver the first of 15 A321XLR aircraft to Air Canada, one of the world's premier airlines. The A321XLR will elevate the customer experience through enhanced comfort and service while delivering the efficiency and operational flexibility required to support Air Canada's continued global expansion. We look forward to supporting our valued customer, Air Canada, as they continue to launch new international routes with the A321XLR," said Barry Flannery, chief commercial officer, SMBC Aviation Capital.

"Air Canada is a pioneer in North American aviation, and we are honoured to celebrate the delivery of their first A321XLR. By combining transatlantic range with a significant reduction in fuel burn and CO2 emissions, the A321XLR will further empower Air Canada to unlock ambitious new routes with unprecedented efficiency. We are very proud to see our latest-designed aircraft take flight under the iconic maple leaf," said Benoit de Saint-Exupery, executive vice-president, sales, Airbus Commercial Aircraft.

The A321XLR furthers Air Canada's ability to serve new transcontinental and transatlantic city pairs.

The new Glowing Hearted cabin standard makes its debut on the A321XLR, offering calm, comfort and connectivity to customers. It features personal device power at every seat, fast, free WiFi for Aeroplan members, next-generation inflight entertainment screens that are larger and offer Bluetooth connectivity, and thoughtfully curated cabin finishes inspired by the Canadian landscape and aligned to the airline's brand and commitment to enduring quality. In a first for Air Canada, the A321XLR also offers Air Canada Signature class on a single-aisle aircraft, with 14 lie-flat seats.

Following Transport Canada certification and entry into service, Air Canada plans to integrate the A321XLR into its schedule progressively to support growth across its network. The aircraft's performance and range characteristics are well suited to adjust for seasonal demand patterns and evolving market opportunities.

This delivery is the latest step in Air Canada's multiyear fleet modernization program, which is focused on customer experience, operational resilience and fuel efficiency improvements versus older-generation aircraft. It reflects the airline's commitment to prudent growth, continuous product investment and disciplined execution. In addition to the A321XLR, Air Canada has announced orders for eight A350-1000s for delivery starting in 2030 and 14 Boeing 787-10 Dreamliners. It also continues to take deliveries of the Canadian-built Airbus A220, with 23 aircraft remaining on its firm order of 65. Five Boeing 737 MAX aircraft, on lease, have also been delivered in 2026.

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. Headquartered in Montreal, 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, with more than 10 million members worldwide. 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. Air Canada shares are publicly traded on the Toronto Stock Exchange (AC) in Canada and on the OTCQX (ACDVF) in the United States.

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