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Highlights:
- Before the pandemic, Air Canada (TSX:AC) was one of the most popular stocks in the Canadian equities market.
- The stock performance declined as Air Canada's flight operations were hit in 2020 and 2021.
- In 2020, Air Canada stock had reportedly plunged 53 per cent and last year was not so good for the airline company.
Air Canada (TSX:AC) is one of the worst-affected stocks by the COVID-19 pandemic, and it has left investors wondering if the airline carrier will ever bounce back to the pre-pandemic levels.
On Monday, January 17, the Air Canada stock jumped 1.4 per cent and closed at US$ 23.18 per share.
Before the pandemic, Air Canada was one of the most popular stocks in the Canadian equities market due to its performance.
Also Read: Bombardier (BBD.B) & Transat (TRZ): 2 cheap alternatives to Air Canada
However, the stock performance declined as Air Canada's flight operations were hit in 2020 and 2021, but it is still a popular stock in Canada.
A look at what happened to the Air Canada (TSX:AC) stock:
In 2020, Air Canada stock had reportedly plunged 53 per cent and last year was not so good for the airline company.
The entire aviation and travel industry suffered due to new variants of coronavirus and public health restrictions like lockdowns and closure of international borders.
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In April 2021, the government of Canada granted an aid package worth C$ 5.9 billion to the airline carrier. However, it failed to boost investors' faith in the stock, and the stock never reached close to its 52-week high of C$ 31 apiece set on March 15, 2021.
As the omicron variant has led to a spike in the number of infections worldwide, it is expected that the world will continue to face air travel restrictions, which will further affect the aviation industry.
This year, Air Canada had to cancel its flight operations to Hong Kong at the beginning of this year. Last week, it announced cancelling flights to sun destinations like Antigua, Bermuda, and Havana.
Bottom line
An inconsistent demand for air travel will likely not allow Air Canada to bounce back to the pre-pandemic levels when it used to trade around C$ 50 per share.
Air Canada stock could decline further if the new variant wreaks havoc in the coming months. If you are not a long-term shareholder, you could explore other options.
Also Read: Air Canada's (TSX:AC) Q3 operating revenue up 3x. Time to buy & hold?
