Two senior federal government sources have confirmed to CTV News that the federal government has sold its stake in Air Canada. During the COVID-19 pandemic in 2021, the government purchased a six per cent stake in the airline for $500 million as part of a bailout package.

As of Thursday afternoon, Air Canada shares closed at $25.28 on the Toronto Stock Exchange, up 23 cents.

CTV News reached out to the federal transport minister’s office and was referred instead to Deputy Prime Minister and Minister of Finance Chrystia Freeland’s office, who has not yet responded.

When asked about whether Ottawa selling its shares in Air Canada is in any way connected to the government’s spending announcement on Monday, Lee says yes.

“There’s an awful lot of buzz that they’re going to crank up spending yet again. And so, the government needs money. They’re rattling the cupboards to see what bits and pieces can be sold off.”