Can Air Canada (TSX:AC) Still Soar? Should You Buy This Aviation Stock?

2 min read | March 16, 2021 07:52 AM EDT | By Anuj

Air Canada (TSX: AC)

Last month, the carrier suspended its flights on 17 routes and laid off approximately 1,500 staff members due to the stringent pandemic-related procedures and a massive loss of C$ 1.2 billion.

However, the stock has rebounded by 221.81 per cent from its pandemic-led low of C$ 9.26 per common share on March 18, 2020.

It has gained 30.87 per cent year-to-date (YTD), outperforming the S&P TSX Airlines (Sub-industry) Index that has relatively increased by 2.13 per cent YTD. On March 15, the stock closed its trading session at C$ 29.80 per piece.

Air Canada stock has swelled by 33.45 per cent in the last one month, with a 30-day average trading volume of 5.30 million shares.

After grimmest financials in 2020, the C$ 9.975 billion market-cap firm has bolstered its cargo operation to improve its revenue.

Once people start traveling and pre-COVID-19 airline traffic volumes are attained, the airline may bounce back at a faster pace. The largescale inoculation campaign is a step in that direction.

Air Canada could also eventually work with 100 per cent capacity and retain its top line, but it might take a few more years.

Source: Kalkine Group @2021

Acquisition & Partnership In 2021

At the beginning of this month, the company collaborated with a Chorus Aviation Ltd. (TSX: CHR) subsidiary, Jazz Aviation, that will exclusively manage Air Canada Express airplanes.

Under the new CEO Michael Rousseau, the company has also been planning to acquire Transat AT (TSX:TRZ), a travel and tour aviation firm. This transaction may get completed after the government’s aid package announcement anytime soon.

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