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TSE:AC

Air Canada (AC.TO)

22.20
+0.70 (3.26%)
as of Jun 15, 2026, 8:00:00 pm Market Open.
757 watching
0
Investor Insights
star iconJun 14, 2026, 12:00 am

This summary was created by AI, based on 21 opinions in the last 12 months.

Air Canada (AC-T) is a unique player in the airline industry, with a diverse global network and strategic routes that differentiate it from competitors. While some analysts appreciate its potential given the ongoing recovery in travel demand and improvements in operational metrics, others express caution due to high costs, geopolitical concerns, and the unpredictable nature of the industry. Several experts see significant upside potential once challenges like strikes and rising oil prices are resolved, with some projecting a fair value price between $25 to $40 per share. However, the sentiment remains mixed, with concerns about competitiveness and management practices lingering. Overall, many believe that Air Canada holds promise as a long-term investment if the economic environment stabilizes and the company effectively navigates its challenges.

consensus icon
Consensus
Mixed
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Valuation
Undervalued
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BUY
Whippy. Balance sheet problem. Variant is not helping. Time to buy a stock is when no one's paying attention. If you believe that the world will return to normal, trading at 9.9x on 2023 numbers. Not a buy and hold forever. More of a cyclical trade.
DON'T BUY
See his comments about Bombardier. He'll watch the airline space but isn't buying any at the moment.
PAST TOP PICK
(A Top Pick May 14/20, Up 57%) He moved on after its good run. Stay away from airlines right now, as they still have some work to do.
BUY ON WEAKNESS
If you are a trader, you could sell some. If you are an investor, then you could wait for strength and lighten up there. Would add exposure on weakness. Could see a 10% pull back if things go south for the next few months.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They missed operating revenue estimates. Cash burn was less than expected. Revenues are rising 59% and cash burn fell 42%. Probably turning a corner with this upcoming quarter with easing restrictions. Medium term outlook remains intact. Unlock Premium - Try 5i Free

DON'T BUY
It's done well, but she doesn't buy airlines, because they're cyclical and costs lie beyond their control, namely fuel. If you've done well, then transition into a growth sector like tech. AC is in a cyclical growth sector.
DON'T BUY
Stock has priced in a rapid recovery and demand, and he's not so sure it will be that quick. Border isn't really open with the US. Lingering spectre of quarantines. People will be travel wary for a little while. Chance of getting back to pre-pandemic profitability is not likely for 3-4 years. On federal life support, and he doesn't like investing in companies that need bailouts, plus the government will be meddling in its operations.
DON'T BUY
There may be a huge pent up demand for air travel, but the business traveller will be slow to come back. AC-T shares are a long way from being cheap. He thinks there is a lot of balance sheet re-building to do. (Analysts’ price target is $29.00)
DON'T BUY
He's cautious on airline stocks. Misconception that if the stock is down a lot, it's undervalued, and there's a lot of catch-up. He's positive on the reopening. But the enterprise value of the business is back to pre-pandemic highs. Issued a lot of debt and equity, resulting in an expensive valuation. Look elsewhere, perhaps to aerospace.
BUY ON WEAKNESS
There is tremendous speculation in the airline names in general. It is part of the noise factor. Will continue to see lots of it. If you think the airlines are going to normalize, buy the dips around the lows of the previous months.
DON'T BUY
She doesn't typically buy the sector, as there are a lot of costs they can't control. Return to air travel is probably already baked in. She wouldn't recommend getting in at this price point of $28. It's more of a trading vehicle; you have to watch it. Potential fine of 25M is not impacting the stock price.
BUY
It is still 40% off its pre-COVID high. They now have good bookings and load factors. Flights will continue to be added to the market. Business travel is a bit more of a question mark. She thinks it will catch on again. They may still be able to cut costs and get profitability back to pre-COVID levels before traffic has fully returned.
RISKY
Airlines have a ton of debt and are widely cyclical. Not a long-term hold. A trade.
WATCH
Now expect peak debt to be in Q4. Higher fuel is also weighing on their margins. Do not expect an EBIDTA recovery until 2024. Not profitable for a while. Very speculative. A balance sheet issue. Very cyclical. May be too much optimism at these levels. A trading stock.
BUY

Airline stocks are high beta, very volatile. Travel numbers are getting back to pre-pandemic levels. He owns AC. To mitigate single-name risk, you could look at the JETS etf, with 70% of names in the US. If you're OK with the volatility, these are good medium-longer term investments.

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