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Highlights
- Air Canada stock is among the top volume, actively traded stock on the Toronto Stock Exchange in the past ten days.
- The Canadian airline in this quarter recorded a net loss of C$ 1.165 billion ( or C$ 3.31 per diluted share) relative to the 2020 Q2 net loss of C$1.752 billion (or C$ 6.44 per diluted share).
- The flyer planned a year-over-year (yoy) growth of its ASM capacity by 85 per cent in the third quarter.
Air Canada (TSX:AC) stock, on Tuesday, September 28, plummeted by nearly three per cent. This decline came following the airline stock’s rise of about three per cent on Monday.
The Canadian airline, which provides scheduled passenger services, was majorly hit by the COVID-19 pandemic last year as the global aviation industry suffered amid border lockdowns.
As the vaccination programs ramp up and countries opened up their borders for travel, the company is expected to move towards recovery. The resumption of its cross-border these flights could help the national carrier boost its financial position from its pandemic lows, which, in turn, could draw investor attention.
Let’s get a detailed view of Air Canada’s recent stock and financial performance.
Also Read: Can Air Canada (TSX:AC) Stock Recover In 2021?
Air Canada (TSX:AC) stock performance
In the last one week, Air Canada stock has surged by about seven per cent. The firm had a market capitalization of C$ 8.4 billion at the time of writing this.
Air Canada was among the most actively traded stock on the Toronto Stock Exchange (TSX) on Tuesday, marking a 10-day average trading volume of 2.83 million shares.
In the past six months, AC stock has dipped by almost seven per cent. However, the airline scrip has recovered by more than 54 per cent in the last one year.
This year, Air Canada shares have surged by nearly seven per cent.
On Tuesday, the company’s stock closed at a price of C$ 23.74 per share, which was 21.42 per cent below its 52-week high of C$ 31 (March 15, 2021).
Air Canada Q2 results
Image description: Air Canada (TSX:AC) Q2 2021 results
Air Canada’s operating revenues surged by of 59 per cent year-over-year (YoY) to C$ 837 million in its second quarter of 2021.
The aviation giant incurred an operating loss of C$ 1.133 billion in the latest quarter, which was lower than that of C$ 1.555 billion in the same quarter a year ago.
Its net cash burn stood at C$ 745 million in the second quarter of 2021, which was about C$ 8 million per day on an average.
Air Canada’s net loss amounted to C$ 1.165 billion in Q2 2021, as compared to that of C$ 1.752 billion in Q2 2020.
Also Read: Air Canada (TSX:AC) losses continue but bookings pick up
Air Canada’s Q3 2021 Outlook
The company plans to raise its available seat miles (ASM) capacity by approximately 85 per cent YoY in the third quarter of 2021.
In addition, its expects its net cash burn to come in the range of C$ 280 million to C$ 460 million in Q3 2021, which would be about C$ 3 million to C$ 5 million per day on an average.
Also Read: Is Air Transat (TSX:TRZ) a good travel stock to buy on the dip?
Bottom line
Air Canada President and CEO Michael Rousseau stated in the Q2 2021 earnings report that the COVID-19 pandemic hampered the airline business and the industry at large in the latest quarter.
However, he added that the increasing vaccination rates and the easing of travel restrictions have boosted its flight bookings.
While the relaxation of quarantine rules and the financial aid from the Canadian government appears to be helping Air Canada, investors should keep in mind the uncertainty of the pandemic that continues to loom over the industry.
