TSE:AC

Air Canada (AC.TO)

24.84
-0.53 (2.09%)
as of Jul 8, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJul 8, 2026, 12:00 am

This summary was created by AI, based on 20 opinions in the last 12 months.

Air Canada (AC-T) has garnered mixed reviews from experts, reflecting the volatility and unpredictability of the airline industry. Several analysts emphasize its potential for long-term gains, citing a strong recovery in passenger demand and strategic international routes as positive indicators. However, concerns persist regarding the impact of high fuel prices, geopolitical tensions, and labor disputes. While some see significant upside potential due to its current valuation being lower than historical norms and its U.S. counterparts, others express skepticism about its operational efficiency and competitive standing. The recent announcements of direct international routes and a growing cash reserve position contribute to a cautiously optimistic outlook, yet analysts urge vigilance due to the cyclical nature and inherent risks within the airline sector.

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Consensus
Cautious
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Valuation
Undervalued
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UAL
DON'T BUY
This is an industry that has been decimated by the pandemic. He does not know how these businesses will recover. He shies away from this sector.
BUY
Creating a huge base since last year. Has moved since vaccine announcements. Bumpy ride ahead. Two years forward, it will continue to recover as business activity normalizes. For the higher octane part of your portfolio. Be patient, and it should do well.
DON'T BUY
He is cautious on the space. It will take time to figure out the long term impacts of the pandemic. It is going to take time to get back to where it once was. The question is whether business travel will ever get back to where it once was.
BUY
Post-Covid outlook He's been getting optimistic about this and picked up a few shares in the mid-teens. The capital they raised this year helped them get through the pandemic, though they continue to bleed money. Tourist travel will return with vaccines, but not business travel permanently. He expects AC to shift more into freight. This will survive. Strong managers.
DON'T BUY
He is not bullish on them. A lot of the airline companies will need to be diluted. They are tradable as we reopen. In terms of cargo, he can't comment on how much he thinks they would be able to take market share.
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Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK
Another question: In the past six months, which stock has flown higher: Air Canada or American Airlines? Answer: AC-T. In fact, the difference is starker over the past month, with Air Canada soaring 81% and AAL half that. Good or bad, many industries in Canada enjoy little competition and airlines is certainly one of them. In the U.S. airlines can go under, but their competitors will absorb those passengers. In Canada, Air Canada enjoys unrivalled market dominance, especially after buying Air Transat. Another tailwind will come from Ottawa as reports continue to state that Trudeau's Liberals are currently discussing relief to this sector. Even as it soars 5% on good vaccine news days, Air Canada is still roughly half of its pre-Covid high, though in the past month it has shot up from $15 to $27 (as of Dec. 4), past its average price target of $25.78. Overbought? Perhaps, but any aid from Ottawa will propel the airline stocks (including Chorus Aviation) higher. One could argue that regional flights will return sooner than international ones, so Chorus should be charting higher, but investors gravitate to the bigger flyer, AC. Consider this a partial buy. After all, it'll still be some months before mass vaccinations encourage flying volumes to substantially rise.
DON'T BUY
Caution is still required for airlines. They are very cyclical and highly capital intensive and unionized. They can be a great place to invest in short periods of time, but he would not invest in it right now. It has run-up in anticipation of being able to fly again. At current prices, he cannot justify its valuation.
PAST TOP PICK
(A Top Pick Nov 20/19, Down 45%) Trade the market you're in, not the one you'd like to have. He got stopped out. Not that it's not a great company. If you're patient, you could be a buyer today. A lot remains to be seen. Long-term moving averages are flattening.
HOLD

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Cash flow is negative but they currently have $7.7B in cash versus $6B in net debt. Debt maturities are well spread out. Overall, it is still a net positive and creditors know the company is worth more than just an operating entity. Unlock Premium - Try 5i Free

HOLD
It was one of his top picks back in June. You are seeing the crawl up due to positive vaccine news. It has been relatively sideways this year. If you are patient, things will normalize. If you wait 6-12 months out, the stock will move higher. There is liquidity in the books so they will be fine.
DON'T BUY
Not tempted. Lots of balance sheet debt and operating debt. Don't really make any money unless they have a 75% load factor, and travel is down. High airport rents. No bailouts in sight. Respected CEO is retiring.
BUY
Need to be patient over next year or so. Lots of cash on hand, so they'll survive. Highly cyclical. Starting to inch its way up. Once we start to see normalcy in travel, could do very well. Small position only in this, and depends on your risk tolerance and time horizon.
SELL
Challenged. If you're tempted to buy, slap your hand and don't do it. Things can get worse before they get better. Their balance sheet has helped them through. Can't call a bottom on it yet. Sell, and wait to see what happens on the other side.
DON'T BUY
In your TFSA, you could buy a high flyer, but you could really get it wrong. Better to dial expectations down a bit. If you're going to buy a stock with balance sheet trouble, you probably want it in a non-registered account so you can use the losses. For the risk/reward, he wouldn't buy airlines here at all.
DON'T BUY
He doesn't invest in options. He'd rather own stocks. The US announced that there will be more assistance to their carriers. AC will probably be alright too, but in general the sector is uncertain. Business travel is also uncertain and they added more debt due to the crisis. He would avoid it.
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