The Montreal-based carrier’s shares rose as much as 15 per cent Wednesday morning after it agreed Tuesday to sell a 25 per cent non-controlling stake in its loyalty program, Aeroplan, to Blackstone, La Caisse, PSP Investments and BCI. (The Logic)

Talking point: The deal values Aeroplan at $10 billion, above Air Canada’s roughly $7.8 billion market capitalization and well above the $5.1 billion that National Bank analyst Cameron Doerksen estimated the business was worth. Air Canada expects to close the deal by Aug. 17, with the option to buy back the stake in five to eight years. The airline plans to use the proceeds to help repay $1.7 billion of maturing bonds and buy back $800 million of shares in September. On Tuesday, Air Canada also reported a second-quarter net loss of $178 million, compared with net income of $186 million a year earlier, as jet fuel costs rose 49 per cent, CFO John Di Bert said on the earnings call. Meanwhile, revenue increased 11 per cent to $6.27 billion, supported by strong demand. The airline also reinstated its full-year guidance for adjusted EBITDA of $2.9 billion to $3.2 billion after suspending its outlook in April amid the war in the Middle East. 

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