Air Canada (TSX:AC) Set To Resume Flights: Window To Buy & Hold? - Kalkine Media

June 01, 2021 04:56 AM EDT | By Raza Naqvi
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Summary

  • Stocks of Air Canada (TSX:AC) closed last week on a high after hitting a record price of 27.86 on Friday, May 28.
  • The airline stock, which climbed about one per cent on Monday, soared by 10.5 per cent in the past one month.
  • This surge could be due to the latest announcement for the members of Air Canada's coalition loyalty program Aeroplan.

Stocks of Air Canada (TSX:AC) closed last week on a high after hitting a record price of 27.86 on Friday, May 28. The airline stock, which climbed about one per cent on Monday, soared by 10.5 per cent in the past one month.

This surge could be due to the latest announcement for the members of Air Canada's coalition loyalty program Aeroplan. Under the new initiative, members of Aeroplan can earn and redeem points if they are booking a new rail excursion with Rocky Mountaineer.

Members who will accumulate more than 50,000 bonus points will reportedly be eligible for a complimentary upgrade to GoldLeaf Service.

There are reports that airline operators and representatives of the tourism industry have urged the government to formulate a plan to reopen the country for travel. Both the travel and tourism industry has suffered a huge setback due to the COVID-triggered travel bans.

 

Air Canada Set To Resume Flights


Starting Tuesday, June 1, the flag carrier will reportedly resume non-stop flights from Toronto to Dubai. On June 3, it is set to restart flights from the UAE to Canada. In February 2021, due to a global surge in coronavirus cases, flights to Dubai and several other countries were suspended.

Air Canada also plans to resume its Castlegar and North Bay flights later in June. If the planned restart happens soon and the government lifts travel restrictions, there are chances that the flight carrier might be able to restore some normalcy in business operations and curb its losses.

 

Air Canada (TSX:AC) – Stock & Financials


AC stock grew 20 per cent year-to-date (YTD) and swelled by 72 per cent in the past year.

1-year chart of stock performance, volume and moving average exponential of Air Canada (Source: Refinitiv)

More recently, in the past three months, Air Canada’s share price grew about four per cent.

The airline operator's market cap stands at C$ 9.8 billion, while its debt-to-equity ratio is 7.7, as per TMX.

Air Canada’s operating revenues amounted to C$ 729 million in Q1 2021. The aviation giant’s diluted loss per share was C$ 3.9, which had narrowed by C$ 0.1 from the first quarter of 2020.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.


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