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Highlights:
- Canada has various companies operating in the airline industry, and most of them are also listed on the TSX.
- The most popular airline stock in Canada, Air Canada, must be mentioned while discussing the airline stocks.
- Cargojet Inc. runs a domestic air freight co-load network between sixteen significant Canadian cities.
The lockdown impacted every business, followed by the coronavirus outbreak worldwide. Different enterprises were affected differently, and airline stocks illustrate this well.
Now that the markets have reopened, is it a good time to explore airline stocks? Canada has various companies operating in the airline industry, and most of them are also listed on the Toronto Stock Exchange.
Let's find out if these airline stocks are worth watching in 2023:
Air Canada (TSX:AC)
The most popular airline stock in Canada, Air Canada, must be mentioned while discussing the airline stocks. As of writing, the market capitalization of Air Canada was C$ 6.5 billion.
In Q4 2022, the airline's passenger revenues were C$ 4.06 billion, double than the revenues of Q4 2021 and two per cent higher than Q4 2019. Meanwhile, the operating revenues amounted to C$ 4.68 billion, up 71 per cent year-over-year (YoY).
The net income of the Canadian operator was C$ 168 million in Q4 2022, compared to a net loss of C$ 493 million in the fourth quarter of 2021.
Air Canada's net cash flow from operations amounted to C$ 647 million, up from C$ 508 million in Q4 2021.
In full-year 2022, the company narrowed its operating loss to C$ 187 million from C$ 3.049 billion in 2021.
Cargojet Inc. (TSX:CJT)
Cargojet Inc. runs a domestic air freight co-load network between sixteen significant Canadian cities. The company transports more than 25,000,000 pounds of cargo each week and offers dedicated ACMI and international charter services. Cargojet uses its 34-aircraft fleet to fly its network.
The total revenues in the fourth quarter of 2022 amounted to C$ 267 million, up from C$ 235.9 million in Q4 2021. Meanwhile, the adjusted EBITDA decreased to C$ 82.9 million from C$ 90.5 million in the same period.
Cargojet paid a quarterly dividend of C$ 0.286 per share, and its dividend yield was 1.08 per cent at the time of writing.
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.
