Air Canada Procures Nearly 78 Million Litres of Unblended Neat Neste MY Sustainable Aviation Fuel For Use in Canada

Contributes significantly to Air Canada's target to procure 1% of sustainable aviation fuel (SAF) for its estimated 2025 jet fuel use
Supports airline's environmental sustainability commitments and highlights the need for SAF production in Canada
SAF purchased comparable to the conventional jet fuel used on approximately 1,197 Vancouver-Montreal round-trip flights on fully booked, average cargo hold, of a 787-9 Dreamliner, at a 50% SAF to conventional jet fuel blend

Editor's Note: For more information on SAF, please consult this fact sheet.

MONTREAL, Nov. 12, 2024 /CNW/ - Air Canada today announced that it has signed an agreement with Neste to purchase 77.6 million litres (20.5 million U.S. gallons) of Neste MY Sustainable Aviation Fuel™ as it continues to pursue its climate plans and aspiration.

An Air Canada Boeing 787 Dreamliner. (CNW Group/Air Canada)

"Air Canada is actively pursuing efforts to mitigate its greenhouse gas emissions and SAF is a critical component of our multifaceted approach to reducing our impact on the environment and promoting environmental sustainability in our operations. This SAF purchase from Neste contributes significantly to our target of procuring SAF for one per cent of our estimated jet fuel use in 2025," said Michael Rousseau, President and Chief Executive Officer at Air Canada.

"While Air Canada and the Canadian aviation industry will continue to depend on imported SAF, SAF must also become available at scale in Canada to achieve our long-term aspirational goal of net-zero greenhouse gas emissions by 2050. This is why we at Air Canada are asking federal and provincial governments to play a role and support the development of a competitive SAF industry and production market in Canada."

"We are proud to expand our partnership with Air Canada by supplying them with a large volume of Neste MY Sustainable Aviation Fuel for use at Vancouver Airport. It is the first time our SAF is supplied to Canada. It underlines our commitment to supporting the Canadian aviation industry in its efforts to mitigate emissions and also shows the important role that policy support can play in accelerating SAF usage. We look forward to continuing our excellent collaboration with Air Canada," said Carl Nyberg, Executive Vice President at Neste.

Neste, one of the world's leading producers of SAF, will deliver the neat SAF purchased in a blended form to the Vancouver marine terminal starting next month, with further shipments throughout 2025. This purchase represents Air Canada's first commercial import of SAF into Canada.

Although some additional capacity is coming online, the current global SAF supply remains very limited and costly, and can only satisfy a very small fraction of worldwide demand. In 2024, IATA announced that even a tripling of SAF production in 2024 would still only account for 0.53% of aviation's total fuel requirements in 2024. Air Canada along with other major Canadian companies, has been engaged with governments in Canada to advance the availability of SAF and encourage support for the development of a cost-competitive Canadian-made supply of SAF for commercial aviation. Achieving this will require a regulatory approach that balances demand with supply, in order for aviation to decarbonize through energy transition while mitigating impacts on consumers. Canada is uniquely positioned to lead in the production of SAF with its abundant renewable feedstocks, advanced refining capabilities, and innovative technology providers, according to C-SAF. By leveraging these strengths, the country can create a resilient supply chain that not only supports its environmental goals but also drives economic growth and job creation.

Air Canada continues to work towards its long-term aspirational goal of net-zero GHG emissions from all its global operations by 2050, and its absolute midterm GHG net reduction targets by 2030 for both its air and ground operations, compared to its 2019 baseline.

Through Air Canada's Leave Less Travel Program, corporate customers and cargo freight forwarders can purchase scope 3 environmental attributes associated with SAF, carbon offsets or a combination of both related to their own business air travel or cargo shipments on Air Canada. This program is one of the many initiatives being implemented to help customers with their own environmental sustainability goals.

For more information about Air Canada's environmental and sustainability programs, please visit Leave Less.

About Neste SAF

Sustainable aviation fuel is a renewable aviation fuel providing a more sustainable alternative to conventional, fossil-based jet fuel. Using Neste MY Sustainable Aviation Fuel™ may reduce greenhouse gas emissions by up to 80 per cent over the fuel's life cycle, compared to using conventional jet fuel and when used in neat form (i.e. unblended) and calculated with established life cycle assessment methodologies, such as CORSIA methodology. Neste's SAF is made from used cooking oil and animal fat waste and is certified for commercial use. SAF can currently be blended with up to 50% conventional jet fuel before use and is compatible with existing aircraft engines and fueling infrastructure.

Caution Regarding Forward-Looking Information

This news release may include forward-looking statements within the meaning of applicable securities laws. Such statements are based on assumptions, are subject to important risks and uncertainties, and cannot be relied upon due to, among other things, changing external events and general uncertainties of the business of Air Canada. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including those discussed in Air Canada's public disclosure file available at www.sedarplus.ca.

Air Canada has and continues to establish targets, make commitments and assess the impact regarding climate change, and related initiatives, plans and proposals that Air Canada and other stakeholders (including government, regulatory and other bodies) are pursuing in relation to climate change and carbon emissions. The achievement of our commitments and targets depends on many factors, including the combined actions of governments, industry, suppliers and other stakeholders and actors, as well as the development and implementation of new technologies. In particular, our 2030 carbon emission-related targets and our related 2050 aspirational goal are ambitious and heavily dependent on new technologies, renewable energies and the availability of a sufficient supply of sustainable aviation fuels (SAF), which continues to present serious challenges. In addition, Air Canada has incurred, and expects to continue to incur, costs to achieve its ambition of net-zero greenhouse gas (GHG) emissions and to comply with environmental sustainability legislation and regulation and other standards and accords. The precise nature of future binding or non-binding legislation, regulation, standards and accords, on which local and international stakeholders are increasingly focusing, cannot be predicted with any degree of certainty, nor can their financial, operational or other impact. There can be no assurance of the extent to which any of our climate ambitions will be achieved or that any future investments that we make in furtherance of achieving our climate ambitions will produce the expected results or meet increasing stakeholder environmental, social and governance expectations. Moreover, future events could lead Air Canada to prioritize other nearer-term interests over progressing toward our current climate ambitions based on business strategy, economic, regulatory and social factors, and potential pressure from investors, activist groups or other stakeholders. If we are unable to meet or properly report on our progress toward achieving our climate change ambitions and commitments, we could face adverse publicity and reactions from investors, customers, advocacy groups or other stakeholders, which could result in reputational harm or other adverse effects to Air Canada.

The forward-looking statements contained or incorporated by reference in this news release represent Air Canada's expectations as of the date of this news release and are subject to change after such date. However, Air Canada disclaims any intention or obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise, except as required under applicable securities regulations.

Further, this news release contains statements obtained by Air Canada solely from Neste. Such statements are based on representations made by Neste and have not been independently verified by Air Canada.

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 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 US.