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TSE:AC
Air Canada (AC.TO)
22.36
+0.16 (0.70%)
as of Jun 16, 2026, 1:32:55 pm Market Open.
757 watching
Financials 
Technical Analysis 0
Investor Insights
Jun 14, 2026, 12:00 amThis 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
Mixed
Valuation
Undervalued
Similar
Lufthansa, LHA
DON'T BUY
Doesn't own airlines, given huge fixed costs and obviously the air travel recovery has been prolonged, though will eventually come back. There are fewer players in Canada, so AC will certainly participate in a wider recovery. Canada's strong restrictions in air travel have hampered airline recovery. Doesn't see long-term secular growth in the airline sector.
Transportation
DON'T BUY
Over time, people will travel again, though certainly not right now. AC is burning through cash because of few passengers. Buying this depends on your time frame. If you're long term, now is an attractive entry point. As improvements in vaccines and treatments accelerate, then we will see airline stocks bounce back even before airline travel numbers rise, as investors anticipate that bounce back. Don't expect quick returns here. You need to give the entire airline industry time to recover.
Transportation
BUY
Still likes it. Slowly moving higher. You have to be very patient in the travel and leisure space. Lots of liquidity. In 18 months, more people will be flying. Watch your weighting, don't put 30-40% into the space. Downgrade to single B credit rating by S&P does not overly concern him.
Stan WongOwned
Transportation
DON'T BUY
They've been raising a lot of money, even under distress. He hears they were burning $20 million per day until they did layoffs. Problem with airlines is that they don't know when operations will return to normal, while customers are staying away. Airlines must keep paying staff and storing planes. Buying any airline now is an act of courage and tremendous optimism. He hopes things get better, but he won't bet on them now.
Transportation
HOLD
Look at it over a three year time horizon. Management believes they will be back to normal business by 2023. It could double in three years. It would be a fantastic return for a new money investment. It will probably appreciate in two phases. First investors have to be comfortable with their balance sheet. Second phase is people are more convinced that air travel is on its way to a full recovery. Their balance sheet is great.
Transportation
DON'T BUY
The airline industry is where barriers to entry were low to zero and capital always seemed to be high and barriers to exit were always high. It was a good area of the market for about 10 years. This is no longer the case. It will not come back quickly. It is not a great investment, even if there have been trades recently.
Transportation
TOP PICK
He likes travel and leisure during this recovery. AC is bouncing back, and he just picked up shares. Covid cases are declining and he sees good progress in producing a vaccine. AC reports more air travel now, and expects a pick-up in domestic travel, because Canadians can't or won't travel abroad, and business travel will rise in the fall. AC has a strong balance sheet and have $10 billion in liquidity to cushion them against a second wave. This is a recovery story. (Analysts’ price target is $25.57)
Stan WongOwned
Transportation
DON'T BUY
Airlines are trades and never long term investments because mostly airlines tend to be their own worst enemy as they buy more planes and add more capacity as we get to the top of a cycle. He thinks it will take a long time for people to want to fly the way they did before. They are burning huge amounts of cash now. He would not buy one.
Transportation
RISKY
He bought AC in late-March. He thinks that was a mistake as he got his head handed to him. If you are in the camp that things will get better for travel in general (including hotels, ride-sharing, airlines, etc.) this will be a great investment. He would not go in guns a blazing -- take a small position and average in. All bets are off if the cases of COVID continue unabated.
Transportation
PAST TOP PICK
DON'T BUY
Market. Over the prior few years it was one of the best performing stocks on the TSX. He has dumped the airlines due to the pandemic and will never buy an airline stock again. Their management has done a terrific job and airlines have been strong in terms of load factors. The world has changed dramatically. He is concerned how it will do over the next years and their balance sheet is destroyed. It is hard to rationalize how airlines come out of this.
Transportation
WAIT
He has owned it in the past, when it was coming through the restructuring about a year and a half ago. They bought back into it in mid-March, but got stopped out due to the volatility. It is a great company and had a good balance sheet. This is an example of what can happen to companies with high fixed costs. Capacity has fallen 80-90%, but most of the fixed costs still exist. The government will have to make sure we don't lose this nation wide airline. But how long will it be for you to be comfortable flying inter-continental?
Transportation
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