Skip to Content
Rating as of

Morningstar’s Analysis

Valuation
Currency in CAD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Air Canada Remains in Stasis as Lockdowns Continue to Depress Travel in Canada

Burkett Huey, CFA Equity Analyst

Analyst Note

| Burkett Huey, CFA |

No-moat rated Air Canada reported a difficult first quarter of 2021 as both domestic and international travel remains restricted in Canada. We’re decreasing our fair value estimate to CAD 28 per share from CAD 30 as we decrease our estimates for payroll support in 2021 and as we push our estimates for a domestic travel recovery in Canada from spring and early summer to late summer and fall. We think the stock is fairly valued at current prices but see potential near-term positive catalysts in the next few quarters from the Canadian reopening and the easing of international border restrictions.

Read Full Analysis

Company Profile

Business Description

Air Canada is Canada's largest airline, generally serving nearly 50 million passengers each year together with its regional partners. Air Canada is a sixth freedom airline, similar to Gulf carriers, which flies many U.S. nationals on long-haul trips with a layover in Canada. In 2020, the company generated about CAD 6 billion in total revenue, down from $19 billion in 2019 due to the pandemic and related travel restrictions.

Contact
7373 Cote Vertu Boulevard West, Air Canada Centre
Saint-Laurent, QC, H4S 1Z3, Canada
T +1 514 422-6644
Sector Industrials
Industry Airlines
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 21,113

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.