Added to YB: 2026-04-27
Pitch date: 2026-04-23
AC.TO [bullish]
Air Canada
+1.37%
current return
Author Info
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Company Info
Air Canada provides domestic, U.S. transborder, and international airline services. It provides scheduled passenger services under the Air Canada Vacations and Air Canada Rouge brand names in the Canadian market, the Canada-U.
Market Cap
CAD 5.3B
Pitch Price
CAD 18.30
Price Target
N/A
Dividend
N/A
EV/EBITDA
4.01
P/E
9.80
EV/Sales
0.51
Sector
Passenger Airlines
Category
value
Air Canada: Grounded or Ready for Takeoff?
AC.TO: Trades 3.6x EV/EBITDA vs Delta 7.5x, United 6.5x despite comparable leverage (1.3-1.6x net debt/EBITDA). Share count down from 376M to ~290M via $850M buyback incl. $500M SIB. 2025: $22.4B rev, $3.1B EBITDA, $747M FCF despite $375M labour disruption. A321XLR deliveries start 2026 to lower costs on thin long-haul routes. Move to 4.5-5x EBITDA = material upside. Risks: fuel, FX, labour costs.
Read full article (4 min)