TSE:AC

Air Canada (AC.TO)

24.84
-0.53 (2.09%)
as of Jul 8, 2026, 8:00:00 pm Market Open.
757 watching
0
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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PAST TOP PICK
(A Top Pick April 29/10 Up 4%.) Fuel factor has driven this down. Still a Hold.
DON'T BUY
High oil prices are not good for airlines. The time to own an airline is in the middle of a recession and probably when it’s in bankruptcy. You buy the bonds rather than the stocks.
PAST TOP PICK
(Top Pick Nov 24’10, Down 28.61%) Concerns were about union negotiations but oil price is now more of a concern. Jet fuel is about 25% of their operations.
COMMENT
Higher oil prices are going to hurt them. Prior to the middle east problems, traffic was picking up, pricing was getting better and everything was indicating they could have a really good year. This is one of the most sensitive companies to higher oil prices. If oil prices are down below $100 by June, we are OK otherwise you don’t want to own.
DON'T BUY
Reported $134 million profit but $111 million was in foreign exchange. Analysts had expected a $0.04 a share loss but it came in at $0.06. Airlines are extremely sensitive to oil prices.
COMMENT
Right now there are two factors affecting them. Positive: There is a lot of competition from airline manufacturers, depressing prices of planes. Negative: fuel prices.
BUY
Upside should be good from here on because airlines have toughened up and prices have gone up. Possibly a double.
BUY
Parent company sold a big block of stock and it put pressure on the stock. They have been managing the capacity quite well. They will do well of the economy continues to recover. In general he doesn’t like the airline industry.
COMMENT
Stock has been a surprise to a lot of people by tripling. Just did a debt offering. Has always stayed away from airline stocks. Analysts have a target for $7.50, which he believes, but he would rather own something else. In about 2-3 years they’ll be back to the drawing board trying to raise money again and restructuring.
DON'T BUY
Has under performed US airlines. He owns Transat because of earnings (in his top 50 Canada/US stocks).
TOP PICK
Very pleased with recovery of air travel in Canada. Benefiting from higher priced business travel and increased Atlantic and Pacific travel. Very inexpensive.
HOLD
A little overbought. Was base building in 2009 and there was an assumption of a new trend. Could see a pull back to $3.40 area. A lot more upside in the long term.
DON'T BUY
Would stay away from this airline altogether. Because of their debt load and problems, it doesn’t interest him.
TOP PICK
Trading around 4X earnings. Still has debt, but it is not onerous. Expecting it to be a double from here.
DON'T BUY
Warrants. Has never been a fan of this company or any airline stocks. Speculative at best. Doesn't like the overall business model.
Showing 541 to 555 of 575 entries