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TSE:AC
This summary was created by AI, based on 14 opinions in the last 12 months.
Air Canada (AC-T) has received mixed reviews from analysts and experts, highlighting the challenges and opportunities within the airline industry. While some experts express optimism due to an increasing focus on global routes and a strengthening balance sheet, others caution against the unpredictable nature of the airline business, citing high operational costs and sensitivity to economic conditions. Several reviews indicate that the stock is trading at a discount compared to U.S. counterparts, suggesting upside potential if the economic landscape stabilizes. Notably, the recent resolution of labor disputes and improved operational metrics have led to a more favorable outlook. However, ongoing uncertainties related to geopolitical factors and oil prices continue to pose challenges, suggesting potential volatility in the stock's future performance.
One of his best stocks last year. Cheap, trades at only 10x earnings. Airlines have seen consolidation which has benefited all companies, making them more efficient. AC offers good growth and has signed a labour agreement that reduces cost structure. Fuel costs are stable, another plus. AC has nearly $3 billion in excess cash to grow their business or buyback shares. AC carries little debt. Also, AC has execution risk buying Westjet. Overall, AC is well-run. Airlines now remind him of when the rails were consolidating after many bad years then became more efficient and profitable.
Aeroplan is making changes to this points program which is upsetting cardholders. Trades at 10x earnings, cheaper than American peers. They've done a great job executing well. The airlines have consolidated a lot. Loyalty plans will continue to change; they're so pervasive that the plans have the power to change them. TD now has access to this plan.
(A Top Pick Feb 05/19, Up 42%) Integrating Aeroplan went smoothly and low oil prices helped. Taking out Air Transat would really be accretive to AC. But the grounding of the Boeing 737 could impact AC by creating tighter capacity and higher plane tickets. The biggest concern is the overall economy, though he expects the economy to remain positive.