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Air Canada (TSE:AC)
TSX:AC
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Air Canada (AC) Price & Analysis

4,067 Followers

AC Stock Chart & Stats

C$18.96
-C$0.35(-1.59%)
At close: 4:00 PM EST
C$18.96
-C$0.35(-1.59%)

Bulls Say, Bears Say

Bulls Say
Operating Cash FlowAir Canada generates meaningful absolute cash from operations and positive free cash flow on a TTM basis. That durable cash generation supports near-term capex, working capital needs, and servicing of obligations, providing financial flexibility across industry cycles.
Diversified Revenue StreamsThe group's multi-brand network, cargo operations and the Aeroplan loyalty franchise create diversified, recurring revenue channels. This structural mix reduces reliance on a single market segment and amplifies commercial partnerships and ancillary revenue durability over several months.
Balance Sheet Improvement TrendA meaningful turn from negative equity to positive equity marks lasting repair of solvency risk versus the pandemic trough. That improvement underpins access to capital markets and refinancing options, improving medium-term strategic flexibility despite remaining leverage.
Bears Say
High LeverageElevated absolute debt and a ~4.5x debt-to-equity ratio limit Air Canada's financial agility in a cyclical industry. High leverage increases interest and refinancing risk, constrains capital allocation choices, and reduces the buffer against demand shocks or cost spikes over coming months.
Thin ProfitabilityNet margins have weakened materially from the 2023 peak, leaving a thinner earnings buffer versus cost volatility. Lower margins reduce retained earnings and the ability to self-fund investments or rapid deleveraging, heightening vulnerability to fuel, labor, or demand downturns.
Volatile Cash ConversionFree cash flow lagging net income and historical swings show working-capital and capex can quickly absorb earnings. Structural volatility in cash conversion weakens capacity to consistently pay down debt or invest, complicating longer-term balance sheet repair.

Air Canada News

AC FAQ

What was Air Canada’s price range in the past 12 months?
Air Canada lowest stock price was C$16.45 and its highest was C$23.72 in the past 12 months.
    What is Air Canada’s market cap?
    Air Canada’s market cap is C$6.12B.
      When is Air Canada’s upcoming earnings report date?
      Air Canada’s upcoming earnings report date is Aug 05, 2026 which is in 62 days.
        How were Air Canada’s earnings last quarter?
        Air Canada released its earnings results on Apr 30, 2026. The company reported -C$0.05 earnings per share for the quarter, beating the consensus estimate of -C$0.451 by C$0.401.
          Is Air Canada overvalued?
          According to Wall Street analysts Air Canada’s price is currently Undervalued. Get more investment ideas with TipRanks Premium
            Does Air Canada pay dividends?
            Air Canada does not currently pay dividends.
            What is Air Canada’s EPS estimate?
            Air Canada’s EPS estimate is 0.1.
              How many shares outstanding does Air Canada have?
              Air Canada has 280,771,360 shares outstanding.
                What happened to Air Canada’s price movement after its last earnings report?
                Air Canada reported an EPS of -C$0.05 in its last earnings report, beating expectations of -C$0.451. Following the earnings report the stock price went down -2.091%.
                  Which hedge fund is a major shareholder of Air Canada?
                  Currently, no hedge funds are holding shares in TSE:AC
                  What is the TipRanks Smart Score and how is it calculated?
                  Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                    Company Description

                    Air Canada

                    Air Canada provides domestic, U.S. transborder, and international airline services. It offers scheduled passenger services under the Air Canada Vacations and Air Canada Rouge brand name in the Canadian market, the Canada-U.S. transborder market, and in the international market to and from Canada, as well as through capacity purchase agreements on other regional carriers. As of December 31, 2021, the company operated a fleet of 175 aircraft under the Air Canada mainline brand name comprising 97 Boeing and Airbus narrow-body aircraft, and 78 Boeing and Airbus wide-body aircraft; 123 aircraft under the Air Canada Express brand name, including 50 Mitsubishi regional jets, 48 De Havilland Dash-8 turboprop aircraft and 25 Embraer 175 aircraft; and 39 aircraft under the Air Canada Rouge brand name consisting of 14 Airbus A321 aircraft, 5 Airbus A320 aircraft, and 20 Airbus A319 aircraft. It also provides air cargo services in domestic and U.S. transborder routes, as well as on international routes between Canada and markets in Europe, Asia, South America, and Australia. In addition, the company operates, develops, markets, and distributes vacation travel packages in the Caribbean, Mexico, the United States, Europe, Central and South America, South Pacific, Australia, and Asia; offers cruise packages in North America, Europe, and the Caribbean; and provides travel loyalty programs. Air Canada was founded in 1937 and is headquartered in Saint-Laurent, Canada.

                    Air Canada (AC) Earnings & Revenues

                    AC Company Deck

                    AC Earnings Call

                    Q1 2026
                    0:00 / 0:00
                    Earnings Call Sentiment|Positive
                    The call emphasized strong execution in 2025 with an exceptional Q4: record quarterly revenues and EBITDA, robust cash generation, improved operations, and diversified revenue streams (international, Sixth Freedom, cargo, Aeroplan). Management acknowledged notable near-term headwinds—higher CASM driven by labor and depreciation, the carryover impact of summer labor stoppages, a peak CapEx cycle and transitional fleet timing that will pressure 2026 free cash flow and unit costs. However, leadership presented clear mitigation plans (cost reduction programs, sale-and-leasebacks, fleet modernization, pricing/route strategy) and confidence in medium-term margin and cash generation improvement driven by network scale and new aircraft economics. Overall, the positive financial results, strong balance sheet and strategic positioning materially outweigh the transitional cost challenges described.View all TSE:AC earnings summaries

                    AC Stock 12 Month Forecast

                    Average Price Target

                    C$22.86
                    ▲(20.59% Upside)
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<span style=\"color:#199ca5\" class=\"mb3 mt2 fonth8_semibold\"> Strong Buy</span>\n            <div class=\"flexrcb px3 displayflex fonth9_semibold\"><span  style=\"color:#199ca5\">Buy 18,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 4, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 1</span>\n      ","marker":{"lineColor":"#199ca5","enabled":true,"symbol":"circle"}},{"y":18.89,"date":1748736000000,"info":" <span style=\"color:#199ca5\" class=\"mb3 mt2 fonth8_semibold\"> Strong Buy</span>\n            <div class=\"flexrcb px3 displayflex fonth9_semibold\"><span  style=\"color:#199ca5\">Buy 21,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 3, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 1</span>\n      ","marker":{"lineColor":"#199ca5","enabled":true,"symbol":"circle"}},{"y":21.07,"date":1751328000000,"info":" <span style=\"color:#199ca5\" class=\"mb3 mt2 fonth8_semibold\"> Strong Buy</span>\n           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28,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 2, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 0</span>\n      ","marker":{"lineColor":"#199ca5","enabled":true,"symbol":"circle"}},{"y":17.71,"date":1759276800000,"info":" <span style=\"color:#199ca5\" class=\"mb3 mt2 fonth8_semibold\"> Strong Buy</span>\n            <div class=\"flexrcb px3 displayflex fonth9_semibold\"><span  style=\"color:#199ca5\">Buy 19,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 3, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 0</span>\n      ","marker":{"lineColor":"#199ca5","enabled":true,"symbol":"circle"}},{"y":18.44,"date":1761955200000,"info":" <span style=\"color:#199ca5\" class=\"mb3 mt2 fonth8_semibold\"> Strong Buy</span>\n            <div class=\"flexrcb px3 displayflex fonth9_semibold\"><span  style=\"color:#199ca5\">Buy 21,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 6, \t&nbsp;</span>\n    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