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Highlights
- AC stock has delivered a return of over 1,619 per cent since June 25, 2012
- The airline said that it currently serves more than 1,20,000 passengers regularly
- It recently launched seasonal flights to Bangkok and Mumbai for winter 2022 to 2023
Although Air Canada (TSX: AC) stock has seen a significant decline since the onset of the pandemic, it continues to be popular among long-term investors. One reason behind this could be its sturdy performance over the last 10 years. The Canadian airline stock has delivered a return of over 1,619 per cent since June 25, 2012.
Let's delve a little deeper into Air Canada's operational plans.
Where is Air Canada headed?
The top airline has been slowly restoring its schedules as it heads towards the COVID-19 recovery phase with plans to operate below its pre-pandemic capacity for summer 2022.
After Aviation Industry Summit with Federal Transport Minister, Air Canada released a statement laying out a series of consumer initiatives, airports and network developments. The airline also said that it currently operates over 1,000 flights and serves more than 1,20,000 passengers regularly.
In addition, the Canadian airline launched seasonal flights to Bangkok and Mumbai on June 22 for winter 2022 to 2023 after getting final government approvals.
With these developments in line, let us discuss Air Canada's financial performance in Q1 FY2022.
Air Canada (TSX:AC) Q1 FY2022 results
The air carrier said its operating capacity in Q1 2022 was approximately 3.4 times higher than in Q1 2021. The mid-cap air transportation company said that its passenger revenues amounted to C$ 1.91 billion, nearly five times greater than Q1 2021.
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Air Canada also narrowed its net loss to C$ 974 million in the latest quarter compared to C$ 1.3 billion a year ago. Its latest cash flow statement shows that cash from operating activities was C$ 335 million, significantly up from C$ 888 million used in operation last year.
Air Canada's stock performance
AC stock slipped by about 37 per cent in 12 months. This airline scrip was up by over two per cent from a 52-week low of C$ 16.45 (June 16).
According to EODHD/Others, AC stock has sharply fallen by about 24 per cent month-to-date (MTD) and appears to be on a bearish level with a Relative Strength Index (RSI) of 31.53 on June 23 and a falling Moving Average Convergence/ Divergence (MACD) indicator.
Bottomline
When in for a long-term game, Air Canada can be an explorable option as it could see a significant impact when the industry and market environment stabilizes, considering its strategies and airline operations.
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Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
