TSE:AC

Air Canada (AC.TO)

25.76
+1.51 (6.23%)
as of Jul 28, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJul 28, 2026, 12:00 am

This summary was created by AI, based on 18 opinions in the last 12 months.

Air Canada has garnered mixed opinions from experts, illustrating the inherent volatility of the airline industry. Some analysts express optimism about its growth potential, emphasizing its strategic market positioning and improvements in operational efficiency and cash reserves. There is recognition of its strong management team and its ability to navigate challenges, such as rising oil prices and geopolitical issues. Many believe that it trades at a discount relative to its historical valuation and its U.S. counterparts, creating potential upside. However, others caution against the unpredictability of airline stocks, citing high operating costs and labor challenges as significant risks for investors.

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Consensus
Mixed
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Valuation
Undervalued
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AAL
BUY
He may add more. He likes it short- and long-term. Well-positioned for the reopening and are tilting towards freight too, which is good.
PAST TOP PICK
(A Top Pick Mar 02/21, Down 26%) When he recommended it, he expected the summer 2021 to open up for vacations. This year, there's the Russian invasion scaring some travellers. He hopes the war will settle down. He targets $45 for AC. Surging oil prices are also impacting airlines. At these low prices, he would buy then later sell at higher prices.
SELL
Safe recovery stock? Stock got stuck around $25-26, so he sold at technical resistance, taking profits. With travel picking up, this will make sense. Looking out 2-5 years, stock should perform well.
WEAK BUY
Looking at it. Reopening opportunity 3.0. Cut capacity, so prices have gone up considerably, and this should continue for a while. Stock provides a trading opportunity. Good move off the bottom.
TOP PICK
Latest financial results better than expected. Virus concerns are starting to reduce. Company is well positioned for resurgence of travel. Revenue growth will be strong. De-levering the balance sheet at a healthy rate.
DON'T BUY
Not sure why it's up 5% today. She doesn't own the airline sector, because it's very cyclical. Many airlines file for bankruptcy sometime in their lives. There are a lot of fixed costs beyond airlines' control. They have little pricing power in plane tickets. Airlines are a trade at best.
PAST TOP PICK
(A Top Pick Feb 01/21, Up 14%) Balance sheet was well fortified during the pandemic. It is well positioned with good cost structure and growth potential.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company has a stronger balance sheet, better valuation and sales growth estimates than peers and other aviation companies. There is still risk associated with AC but it is a well-known brand with support from the federal government. Unlock Premium - Try 5i Free

PARTIAL BUY
Did quite well 2 months ago with first cap positive quarter. However Omricon has caused sector to sell off. Hard to know now for sector. He owns some and feels you could buy in small quantities.
BUY
Slowly working its way back to previous levels. Fleet upgrade to more fuel efficient planes. Vacationers and business travellers are trying to get back online with increased vaccinations. Well positioned for a 3-5 year liftoff.
HOLD
Stock should go up from here. Target might now be $50, instead of the $65 pre-pandemic.
BUY
He bought last year when they fell. It has taken longer to come back but is looking more constructive right now. This has been the first cash-flow-positive quarter since pre-pandemic times. They are taking delivery of planes that were earmarked for 2022. It is more likely to appreciate from its current level.
COMMENT
Timing the reopening play is an interesting theme to play. AC will come with lots of volatility. AC has changed their capital structure that could dog them when they come out on the revenue side. If you buy AC and stomach the volatility, you will be in a better space. CAE is probably a better way to play. You get more margin of safety and you will also get a good margin profile when utilization of their training picks up. CAE would be his choice.
DON'T BUY
Airlines are tough at the best of times. The world has changed, so hard to see how things will shake out. Airlines will be diminished. He doesn't normally invest in this sector; it could be a trade at this stage of the reopening. He owns the high-yield bonds instead.
HOLD
Need to be patient. Delta variant threw a wrench into the recovery. This name should recover decently. Revenues will bounce. You could trade it, but 12-24 months should see a higher price.
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