AUS
NZ
UK
CA
USA
IND
Highlights
- While most tech-focused and online companies have fared well amid the pandemic, others, such as those in the aviation industry, have suffered immensely.
- However, some travel companies like Bombardier (TSX:BBD.B) and Transat A.T. (TSX:TRZ) managed to survive the battle and are likely to withstand the Omicron spread.
- An aircraft stock listed below galloped by over 230 per cent YoY.
The pandemic has had different impact on different businesses. While most tech-focused and online companies have fared well, others, such as those in the aviation industry, have suffered immensely.
Air Canada (TSX:AC), for one, took quite a beating through the strict lockdown period. It has been making a turn for the better in the recent quarters, while its stocks also noted some recovery.
AC stocks are currently priced at C$ 22.9 apiece. If you are an investor looking for some cheaper options, you can choose to explore the stocks of aircraft maker Bombardier Inc (TSX:BBD.B) and travel company Transat AT (TSX:TRZ).
Let us explore these two TSX-listed stocks.
Bombardier Inc (TSX: BBD.B)
Bombardier stock rose by over four per cent in 2022. The aircraft stock also galloped by over 230 per cent YoY.
Stocks of aircraft manufacturing company closed at C$ 1.75 apiece on Tuesday, January 12.
Now a maker of only business jets, it generated a business aircraft revenue of US$ 1.4 billion in the third quarter of FY2021. Improved delivery mix and solid aftermarket recovery due to increased fleet flight hours drove the revenue growth of 17 per cent year-over-year (YoY), the company said.
The Mississauga, Canada-based company also reported a free cash flow of US$ 100 million in the latest quarter, which was US$ 747 million up from the prior-year quarter.
Image source: © 2022 Kalkine Media®
In an announcement dated November 2, 2021, the company said that it is set to construct a new facility (which will be completed in 2023) for the final assembly of its Global business jets.
Also read: Is Cielo Waste (TSXV:CMC) a cheap stock to buy?
Transat A.T. Inc (TSX:TRZ)
The air travel company saw its scrip close at C$ 4.45 apiece on Tuesday, having gained about eight per cent in the past one week and over 10 per cent year-to-date (YTD).
Transat A.T. Inc earned revenues of C$ 62.8 million in the fourth quarter of FY2021, indicating a YoY rise of 120.9 per cent. The Montreal-headquartered travel company also recorded a net loss of C$ 121.3 million in the latest quarter, as against that of C$ 238.1 million a year ago.
Transat A.T., which presently holds a return on equity (ROE) of 306.56 per cent, had cash and cash equivalents of C$ 433.2 million at the end of Q4 FY2021.
Also read: Are these unique ocean energy stocks under $6 too cheap to ignore?
Bottomline
The emergence of new COVID-19 variants can hurt the demand of aircraft makers like Bombardier and air travel companies like Transat AT, which can in turn further upset the market sentiments.
Thus, investors should keep a tab on such developments that can impact the performance and growth of different stocks.
