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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
valuation icon
Valuation
Undervalued
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Similar
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DON'T BUY
This is not one you want to cherry pick. He does not think the government will give anything to the airlines without taking something in exchange, like warrants. Equity shareholders could get diluted down. He would not try to make a quick buck out of it. He thinks travel will be one of the slowest businesses to come out of this crisis.
WATCH
The near term is going to be quite difficult. It has been an incredible story until now when the industry has a terrible story. It will take some time for the industry to recover. He has a small position. There are a couple of tough quarters ahead. It is an absolute buy in the low teens.
DON'T BUY
This is not a good entry point. They are going to incur massive losses and likely will need a federal bailout. We don’t know what the terms of the bailout will be.
DON'T BUY
The US airline industry has been one of the worst behaviorists in terms of borrowing money and buying back shares. AC-T did that as well. In the US a lot of their dividends can't be paid for years and years but he does not know if that applies to AC-T. He thinks there may be legislation in terms of the airline industry being a kind of utility. Also with the online age there may be less need in the future for air travel at all.
DON'T BUY
There is not enough clarity in the airline sector and there is more capacity coming online. There will be a long wait until passengers will feel as safe to share their space on planes. He would not buy this. Even if they cut costs, they will not have the revenues to drive free cash flow.
RISKY
She has typically not invested in airlines -- she does not own it. If you are a trader, then maybe there could be speculative bounce higher coming.
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Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK
Contrarian would mean betting on an airline like Air Canada. Sure, every airline is getting hammered. Cancelled routes, postponed conventions and frightened travellers all spell a brutal Q1, perhaps Q2. Since February 19, Air Canada has plunged over 21% and could fall further. Trading around $32 as of this writing, AC-T is way off its $52.71 high. It's lost $3.9 billion in its market cap since that January peak, making it the worst-performing carrier this year. Ongoing woes with the Boeing 737 Max also don't help. So, why even look at Air Canada? (Certainly not the in-cabin comfort.) When this virus fades, air travel will bounce back. Conventions will resume, business meetings and vacations alike will be booked and routes to Shanghai, Beijing and Hong Kong will re-open. Other tailwinds for Air Canada is its takeover of Air Transat (leaving AC-T with virtually no competition in this country), and the plunging price of oil, unless OPEC pulls of a ninth-inning miracle. Though the immediate future is stormy, the distance looks sunny. AC's past is solid. The five years ending last New Year's Eve saw a run-up over 300%. The big question is when does the sun shine again? In a month? This fall? 2021? Who knows? Needless to say, if you are picking up AC anytime soon, be prepare to sit on it for a few years
SELL

Airlines are highly volatile and AC stock has fallen off a cliff. But over five years, this has done very well. The problem with airline stocks is that they can go wrong in so many ways (cost of jet fuel, demand fluctuates). Take a loss. It'll take a while for negative sentiment to go away.

DON'T BUY
Avoid. There's further downside. Remarkable job of building the business the last 10 years. But in this environment, profits just plummet.
WAIT
Over the long term they will do okay. He is just not a fan of airlines in general. He would wait on this one before getting in. He would be okay with it, but not to his tastes.
BUY ON WEAKNESS
The virus has impacted this stock, but it's held at $45 which is encouraging. However, the impact has pushed down oil prices dramatically and will benefit airlines. Don't shy away from AC.
BUY ON WEAKNESS

They're caught in a perfect storm of coronavirus and the Boeing Max 737, both of which are temporary problems. AC quarterly results today were merely okay. Q1 guidance is impacted by the virus, though less than he expected. But Aeroplan and the Air Transat deal are tailwinds. AC is still a cheap name. He owns a lot of this.

PAST TOP PICK
(A Top Pick Jun 27/19, Up 16%) The coronavirus pullback is short-term. They're adding routes. He's still buying it.
DON'T BUY
Airlines are among the most economically sensitive of all. This one has been spectacularly run but the opportunity has now been missed. There are MAX-8 issues on top of the slowing economy. Asian routes are among the most profitable for them and they are now cutting these back temporarily.
BUY ON WEAKNESS
An opportunity to buy during the coronavirus scare? AC is trading near 52-week highs, trading at 4x EBITDA vs. American peers at 6x--that's a valuation discount. AC is bringing down costs and streamlining, which are the right things to do that will benefit the stock for years. So, buy on any weakness like now.
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