CHR: Highlights from the RBC Canadian Industrials Conference

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CHR: Highlights from the RBC Canadian Industrials Conference

EQUITY RESEARCH QUICK TAKE

RBC Dominion Securities Inc.

James McGarragle, CFA, CPA (Analyst)

Louis Derlis, CFA (Senior Associate)

May 20, 2026

Chorus Aviation Inc.

Highlights from the RBC Canadian Industrials Conference

TSX: CHR | CAD 23.76 | Outperform | Price Target CAD 35.00

Sentiment: Neutral

This afternoon, Colin Copp, President & Chief Executive Officer, presented.

Capacity Purchase Agreement

The CPA's fixed-fee structure continues to insulate Chorus from macro uncertainty. Management emphasized that the CPA's

fixed-fee structure provides stable and predictable margins, shielding Jazz from fuel and broader demand headwinds — consistent

with our view that Chorus operates with materially lower sensitivity to macro conditions than traditional airlines. The 39 leased

aircraft currently undergoing active refurbishment by Air Canada were also highlighted — we believe that these aircraft will be

re-leased given Air Canada is paying to have them refurbished but even in a scenario where no contract renewal is reached,

management expressed confidence that those assets can be monetized attractively, reinforcing that the CPA's contract risk is

limited and that the 80-aircraft minimum through 2035 underpins a durable earnings floor.

Voyageur & Defense Opportunities

Voyageur is maturing into a meaningful growth engine, with defense providing long-term upside. Management highlighted

good visibility into the defense pipeline, with active engagement across major contractors, though this was framed as a long-term

growth driver rather than a near-term catalyst, consistent with our view that accelerating Canadian defense spending creates a

durable tailwind for the platform.