
TSE:AC
This summary was created by AI, based on 18 opinions in the last 12 months.
Air Canada has garnered mixed opinions from experts, illustrating the inherent volatility of the airline industry. Some analysts express optimism about its growth potential, emphasizing its strategic market positioning and improvements in operational efficiency and cash reserves. There is recognition of its strong management team and its ability to navigate challenges, such as rising oil prices and geopolitical issues. Many believe that it trades at a discount relative to its historical valuation and its U.S. counterparts, creating potential upside. However, others caution against the unpredictability of airline stocks, citing high operating costs and labor challenges as significant risks for investors.
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.