"Air Canada is Canada's largest airline, serving nearly 40 million passengers annually together with its regional partners.

The company’s stock price had begun to run up faster than earnings.

Predictably, it was hit hard by the huge fall in overall activity. The severity and length of air travel demand decline remains to be seen.

Canadian Oil Stocks: More Upside Than Tech in 2021. But if you’re an older, long-term investor who can’t stomach a double-digit percentage loss, you’d be best advised to stay away from the name and the industry, despite the multi-bagger upside potential should a COVID-19 vaccine land from out of the blue. We’ve seen this over the past 10 years. The company still has some drivers supporting its business such as low oil prices, relatively high load factors (all things considered), and a much better balance sheet than it did 10 years ago. I understand I can unsubscribe from these updates at any time. The coronavirus has left a permanent scar on the face of the air travel industry, and many investors are indeed aware that it could take more than three years for air travel to recover to pre-pandemic levels. The Motley Fool Canada » Investing » Why Air Canada (TSX:AC) Stock Could Triple in a Year, Ambrose O'Callaghan | October 17, 2020 | More on: AC. At the time of writing, Air Canada’s share price is down 30% from its peak. A projected second wave of the virus has caused provinces like Ontario and Quebec to go back to phase two restrictions in major metropolitan areas like Toronto and Montreal. This is your chance to get in early on what could prove to be very special investment advice. The Motley Fool Canada » Investing » Why Air Canada’s (TSX:AC) Stock Price Will Continue its Descent, Chris MacDonald | March 20, 2020 | More on: AC.

Substantial dilution in the event of a government bailout and a further implosion in the stock price, like what happened before the 2007-08 Financial Crisis, should not be ruled out if worse comes to worst. Today, I want to discuss why Air Canada could turn things around in the months ahead and reward investors who get in on its shares right now. This TSX Stock Could Hold The Key to What 1 CEO Says Is Worth 35 Amazons, WHAT in the world could be worth “35 Amazons”? Prior to the recession, the company had entered bankruptcy protection because of $14 billion worth of debt.

Fortunately, it managed to claw its way out of a dire position and finish the 2010s as one of the top-performing stocks on the TSX.

That said, like all airlines, short-term shocks like the coronavirus have the potential to derail earnings for a long period of time. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group. Earlier this month, I’d asked whether investors should give up on Canada’s top airliner. This makes Air Canada too risky at this point in time, even for investors with a long time horizon.

© 2020 The Motley Fool Canada, ULC. If you’re a younger investor that has disposable income to speculate with, Air Canada stock looks like a worthy horse to bet on. This dashed the hopes for a rebound in the second half of the year. By the middle of September, Air Canada and WestJet reported that they were forced to cancel over 430 flights. We could still be talking about this outbreak in sic to 12 months from now; it’s uncertain how long it will last. Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. All rights reserved.

Simply click here to discover how you can take advantage of this. Policymakers have warned that even a negative COVID-19 test is no guarantee. There are a few reasons for this. Its stock is still trading a few dollars off its 52-week low. Returns since inception, October 2013. Don't miss out! Air Canada (TSX:AC) stock fell 1.52% on October 15. Current as of October 26, 2020. Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. We could still be talking about this outbreak in sic to 12 months from now; it’s uncertain how long it will last.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

That’s a dire prediction, and to think it’s coming from a man at the helm of a company that depends on the success of the air travel industry. Air Canada (TSX:AC) stock fell 1.52% on October 15. In 2016, the company generated CAD 14.7 billion in total revenue, split across passenger services (roughly 90% of revenue), cargo (4%), and other … Moreover, it posted an operating loss of $1.55 billion. Air Canada and its peers have attempted to present alternatives through airport testing, in hopes that the government may rollback the 14-day quarantine for international travelers.
© 2020 The Motley Fool Canada, ULC. We encourage you to act quickly if you want to get in on this opportunity, because the story of the coming boom is already starting to leak out and this trend looks ready to take off. But for a heavily unionized company like Air Canada, labour contracts, long-term pension obligations, and airplane leases will not go away, regardless of sector-wide demand. Current as of October 26, 2020.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. Then in 2008, the company nearly tripled its pension deficit, which reached as high as $3.2 billion that year (up from $1.2 billion in 2007). That outlook has not been wholly dimmed. Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

As such, Air Canada is too vital to the Canadian economy to go under, unlike its peers south of the border, only one of which could afford to drop without causing an irreparable supply-demand imbalance.

They are unable to easily offset these costs, making a pronounced short-term decline in air travel potentially disastrous from a balance sheet perspective. Canadian Oil Stocks: More Upside Than Tech in 2021. The number of passengers carried could take years, if not decades, to return to pre-pandemic levels. The answer is a radical breakthrough that Wired says is “the rocket fuel of the AI boom.”. Please read the Privacy Statement and Terms of Service for more information. Not to alarm you, but you’re about to miss an important event. But with the risk that the pandemic could spill over into 2021 and beyond, the survival of the airlines is no longer a guarantee. 5 Stocks Under $49 (FREE REPORT). Shares of Air Canada last possessed an RSI of 41, which puts the stock closer to technically oversold territory. Earlier this month, I’d asked whether investors should give up on Canada’s top airliner. In the article above, I’d discussed statements from a UBC professors that projected a vaccine would be available in Canada by the spring of 2021. Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada. Today, I want to discuss why Air Canada could turn things around in the months ahead and reward investors who get in on its shares right now.

The company had achieved record profits and its growth trajectory was promising. All rights reserved. In the U.S., there are four major commercial airlines.

There are a few reasons for this. Air Canada (TSX:AC) is in a tough spot again following mounting fears that the airlines could be on the brink of bankruptcy. Not to alarm you, but you’re about to miss an important event. It was wrestling with an unhealthy balance sheet and an economy in the throes of the worst recession in decades. Still, investors should not give up faith in Air Canada going forward.

It is facing major challenges in the near term, but this industry should come roaring back when this crisis abates. Why Air Canada is the best bet for airline investors. That has been squashed to start the fall.

Moreover, it has a solid price-to-book value of 2.2. Air Canada stock’s price has fallen 64% from January levels, as the coronavirus has stripped away all airline traffic demand. Air Canada remains the top player in Canadian aviation. Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada. In the aftermath of the early 2000s recession, Air Canada faced a number of financial difficulties.

My rationale was based on fundamentals alone.

When this industry bounces back in the months ahead, Air Canada will be the biggest beneficiary. CRA CERB Alternatives: 2 Must-Know Emergency Payouts, Forget Growth Stocks: Here’s How to Get Price Gains and Big Dividends, Aphria (TSX:APHA) Stock Plunges: Marijuana Industry in Trouble.

If you're long term, now is an attractive entry point. Fool contributor Chris MacDonald does not own shares in any stocks mentioned in this article. Should You Buy Aphria (TSX:APHA) After Its Recent Pullback?

Returns since inception, October 2013. © 2020 The Motley Fool Canada, ULC.
Why Did Corus Entertainment (TSX:CRJ.B) Stock Soar Higher Last Week? That takes Air Canada out of the race for potential airlines that could go bankrupt by the conclusion of 2020. Why Did Corus Entertainment (TSX:CRJ.B) Stock Soar Higher Last Week?

Is having one of your holdings losing over 95% of its value really that much better than losing your entire investment?

CRA CERB Alternatives: 2 Must-Know Emergency Payouts, Forget Growth Stocks: Here’s How to Get Price Gains and Big Dividends, Aphria (TSX:APHA) Stock Plunges: Marijuana Industry in Trouble. It took Air Canada stock close to six years to rise from $9.5 in mid-2014 to its record high of $52.71 in early 2020. Here in Canada, there’s essentially a duopoly in the air travel industry. Air Canada (TSX:AC) stock fell 1.52% on October 15. Air Canada stock’s earnings and outlook weigh on the stock. Please read the Privacy Statement and Terms of Service for more information. Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. All rights reserved.

I understand I can unsubscribe from these updates at any time. The COVID-19 pandemic has spurred governments to pursue restrictive policies. Returns since inception, October 2013.

In my opinion, this reflects the reality that financial markets have been priced to perfection for quite some time.

Most investors have been looking for an excuse to sell off positions and take profits at the top.

I understand I can unsubscribe from these updates at any time.

Simply click the link below to grab your free copy and discover all 5 of these stocks now. It reported liquidity of $9.12 billion at June 30, 2020.

This is the moment airliners and countless others are anxiously waiting for. Just Released! Should You Buy Aphria (TSX:APHA) After Its Recent Pullback? So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.

A vaccine appears to be the only hope forward for those longing for a return to normalcy.


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