diff --git a/CHANGELOG.md b/CHANGELOG.md
index 422c8eab..e2217cca 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,8 @@
 
 # Development version
 
+# 0.3.0
+
 - Air has gained support for excluding files and folders (#128).
 
   - Air now excludes a set of default R files and folders by default. These
diff --git a/Cargo.lock b/Cargo.lock
index a47c7c43..79799314 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -28,7 +28,7 @@ dependencies = [
 
 [[package]]
 name = "air"
-version = "0.2.0"
+version = "0.3.0"
 dependencies = [
  "air_r_formatter",
  "air_r_parser",
diff --git a/crates/air/Cargo.toml b/crates/air/Cargo.toml
index 49b90e5f..b5cb90f0 100644
--- a/crates/air/Cargo.toml
+++ b/crates/air/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "air"
-version = "0.2.0"
+version = "0.3.0"
 publish = true
 authors.workspace = true
 categories.workspace = true
diff --git a/editors/code/CHANGELOG.md b/editors/code/CHANGELOG.md
index 94ba1b8f..daeab412 100644
--- a/editors/code/CHANGELOG.md
+++ b/editors/code/CHANGELOG.md
@@ -6,6 +6,10 @@
 
 ## Development version
 
+## 0.4.0
+
+- [Air 0.3.0](https://github.com/posit-dev/air/blob/main/CHANGELOG.md) is now bundled with the extension.
+
 - The extension is now available on Linux (#71).
 
 - The extension is now available on ARM Windows (#170).
diff --git a/editors/code/package.json b/editors/code/package.json
index 8d8d93ab..78d2003d 100644
--- a/editors/code/package.json
+++ b/editors/code/package.json
@@ -2,7 +2,7 @@
 	"name": "air-vscode",
 	"displayName": "Air - R Language Support",
 	"description": "R formatter and language server",
-	"version": "0.2.0",
+	"version": "0.4.0",
 	"publisher": "Posit",
 	"license": "MIT",
 	"homepage": "https://posit-dev.github.io/air",