|Bid||14.78 x N/A|
|Ask||14.81 x N/A|
|Day's Range||14.04 - 15.17|
|52 Week Range||9.26 - 52.71|
|Beta (5Y Monthly)||1.12|
|PE Ratio (TTM)||2.71|
|Earnings Date||Apr. 30, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||34.77|
Investors should not be so quick to bail on airlines, especially Air Canada (TSX:AC)(TSX:AC.B), one of the strongest companies in the industry. The post Double Your Money With Air Canada Stock (TSX:AC) appeared first on The Motley Fool Canada.
Air Canada (TSX:AC)(TSX:AC.B) stock has surged more than 50% from its recent lows. But the stock certainly does not look strong.The post How Air Canada (TSX:AC) Stock Is Placed After a Nasty Q1 appeared first on The Motley Fool Canada.
Air Canada (TSX:AC)(TSX:AC.B) will survive the latest economic slump, making it an attractive high-risk, high-return play on the market crash.The post Air Canada (TSX:AC): My Top Speculative Stock to Beat the Coronavirus Crash appeared first on The Motley Fool Canada.
Some are wondering if Air Canada (TSX:AC) may need a government bailout.The post Will the Government Step in to Save Air Canada (TSX:AC) Stock? appeared first on The Motley Fool Canada.
With the COVID-19 pandemic raging, Air Canada stock could be an excellent buy at its current valuation.The post Should You Buy or Sell Air Canada (TSX:AC) Right Now? appeared first on The Motley Fool Canada.
These top stocks are the perfect investment if you have both $1,000 to spend, and a little bit of patience.The post Got $1,000? 3 Top Stocks to Buy appeared first on The Motley Fool Canada.
Here’s why Air Canada (TSX:AC)(TSX:AC.B) and Enbridge Inc. (TSX:ENB)(NYSE:ENB) are two great Canadian names for contrarians to buy cheap and hold forever.The post Air Canada (TSX:AC) Stock Is a Great Contrarian Buy Right Now appeared first on The Motley Fool Canada.
The next few weeks will be crucial for Air Canada (TSX:AC)(TSX:AC.B) stock. Is a bailout a foregone conclusion, or can the company hang on and survive this turmoil? The post What's Next for Air Canada (TSX:AC) Stock? appeared first on The Motley Fool Canada.
(Bloomberg) -- Air Canada will cut capacity by as much as 90% next quarter and temporarily reduce its workforce by about 16,500 to reduce costs during the coronavirus crisis.The decision, effective on or around April 3, puts 15,200 unionized employees on “off-duty status” while 1,300 managers will also be furloughed, the airline said Monday. The company said the cuts were required because of the “dramatically smaller operations” resulting from travel restrictions worldwide.“It will help ensure that Air Canada can manage through this crisis that is affecting airlines everywhere,” Chief Executive Officer Calin Rovinescu said. The reductions, along with other measures, “will position us to restore regular operations as soon as the situation improves.”Canada’s biggest airline built a cash stash that puts it at an advantage in the current turmoil, analysts have said. The company has enough liquidity to meet financial obligations, TD Securities analyst Tim James wrote on March 27 after a call with management.“The conservative approach to how the balance sheet was managed prior to the downturn is benefiting the company today, and management is working towards exiting this crisis as strong as the company entered it,” James wrote.Canada has pledged to craft an aid package for its airline industry, which like peers worldwide has severely curtailed flights in the fight to stop the Covid-19 spread. Prime Minister Justin Trudeau has yet to indicate what form it will take, in contrast to the U.S., where a rescue plan allocated $50 billion in aid for passenger airlines, half in loans and half in cash assistance for payroll and other costs.Air Canada said it will draw down its operating lines of credit of about C$1-billion (about $700 billion) and said Rovinescu and Chief Financial Officer Michael Rousseau will forgo their salary, while senior executives and board members will take a pay cut.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
MONTREAL — Air Canada will temporarily lay off 16,500 employees starting this week as the airline struggles with fallout from the COVID-19 pandemic.Effective this Friday, the layoffs of 15,200 unionized workers and 1,300 managers will last through April and May amid drastically reduced flight capacity from the Montreal-based airline."To furlough such a large proportion of our employees is an extremely painful decision but one we are required to take given our dramatically smaller operations for the next while," chief executive Calin Rovinescu said in a statement.The carrier has halted most of its international and U.S. routes in response to the global shutdown.States from Sweden to China to the United States have rolled out aid packages for the airline sector over the past month as borders closed and travel demand plummeted amid the spread of the novel coronavirus.Air Canada said its cost reduction scheme aims to save least $500 million. It includes a pledge from both the CEO and chief financial officer Mike Rousseau to forego 100 per cent of their salaries, while the rest of the executive team will give up between 25 per cent and 50 per cent.The company will draw down about $1 billion in lines of credit to provide additional liquidity for a carrier that has a $7.3 billion cash cushion to fall back on — more than the most profitable U.S. carrier, Delta Air Lines.Earlier this month Air Canada's flight attendant union said 5,149 cabin crew would be temporarily laid off due to the COVID-19 outbreak. The newly announced layoffs do not include the earlier job reductions.The pandemic has cost thousands of jobs in the airline sector. Transat AT Inc. has laid off at least 3,600 flight attendants while WestJet has seen 6,900 departures including early retirements, resignations and both voluntary and involuntary leaves.WestJet said Monday it is cancelling all transatlantic and U.S. routes until May 4, extending its 30-day suspension by two more weeks.Both Air Transat and Porter Airlines have halted all flights.This report by The Canadian Press was first published March 30, 2020.Companies in this story: (TSX:AC, TSX:TRZ)Christopher Reynolds, The Canadian Press
MONTREAL , March 30, 2020 /CNW Telbec/ - Air Canada said today that due to the unprecedented impact of Covid-19 upon its business, the airline will reduce capacity for the Second Quarter of 2020 by 85%-90% compared to last year's Q2 and will place 15,200 members of its unionized workforce on Off Duty Status and furlough about 1,300 managers. It will help ensure that Air Canada can manage through this crisis that is affecting airlines everywhere.
Air Canada stock is expected to be volatile in the upcoming months as governments battle the dreaded COVID-19 pandemic. The post Why Did Air Canada (TSX:AC) Stock Rise 35% Last Week? appeared first on The Motley Fool Canada.
What risks are you taking for the reward you're getting? You can triple your money with these two stocks but one exposes you to much lower risks!The post This Canadian Bank Stock Is a Better Buy Than Air Canada (TSX:AC) appeared first on The Motley Fool Canada.
Air Canada stock (TSX:AC)(TSX:AC.B) is struggling badly, but that's precisely why now can be a great time to buy the stock at a very low price.The post Why Air Canada Stock (TSX:AC) Can Double Your Money appeared first on The Motley Fool Canada.
(Bloomberg) -- A Canadian software startup backed by Hong Kong billionaire Li Ka-shing picked up signs of the Covid-19 outbreak in China before it even had its name. Now it’s using mobile phone data to assist governments in their response to the pandemic.Toronto-based BlueDot Inc.’s platform was among the first to detect an unofficial report in Chinese on Dec. 31 about several cases of an unusual pneumonia. That caught the attention of its in-house health experts because of similarities with the outbreak of Severe Acute Respiratory Syndrome, or SARS. Nine days later, the World Health Organization flagged that China had made “a preliminary determination” of a novel coronavirus.The Toronto-based company, which uses artificial intelligence to comb tens of thousands of information sources about infectious diseases, then used flight data to identify cities most at risk of contagion.Its focus has now expanded to dig into location data from mobile phones to help governments. That includes the state of California, where the number of deaths from the virus passed 100; Canada, which is dealing with a fast-rising infection tally but has stopped short of forcing residents to stay in their homes; and soon multiple countries in Asia.Closely-held BlueDot, which makes money licensing its early-warning disease software, is one of a string of home-grown businesses touted by Canadian Prime Minister Justin Trudeau in his government’s fight against the outbreak.The company’s newest product uses geolocation information from about 400 million mobiles worldwide to extract clues on how the disease spreads within a country or if social distancing is working. It taps into officials’ growing appetite around the world to determine the effectiveness of their lockdown orders.Anonymized Data“We knew that a pandemic like this was really not a matter of if, it was just a matter of when,” Chief Executive Officer Kamran Khan, an infectious disease physician who worked through the 2003 SARS outbreak, said in an interview. The insight “can help empower public health officials on the ground to make sure that they are reinforcing their key messaging.”The company says it’s taking precautions to ensure privacy and will never analyze infected individuals or their contacts. The data that’s collected by a third party is anonymized and results are aggregated at the population level.Read: Location Data to Gauge Lockdowns Tests Europe’s Love of PrivacyAs more countries lean on technology to help fight the pandemic, some civil liberties groups have expressed concerns. The U.S.-based non-profit organization Surveillance Technology Oversight Project flagged the risks of bias, as well as the long-term threat to democracy in the name of public health.Asked by journalists last week whether he’s considering using telecom companies’ data to make sure people who need to stay confined comply, Trudeau said he’s not.“I think we recognize that in an emergency situation we need to take certain steps that wouldn’t be taking in non-emergency situations, but as far as I know that is not a situation we’re looking at right now,” he said.‘Epidemic wave’Besides the mobile-focused service, BlueDot offers software that gives clients -- including health agencies, hospitals and Air Canada, the nation’s biggest airline -- insight on how the spread of a disease may affect them. The company gained attention in 2016, when predicting where the Zika outbreak would spread.Last year, it received capital from the country’s business development bank as part of a round that brought its total funding to $9.5 million. Li’s Horizons Ventures was an early investor and pitched in last year too.In Canada, the government is using the full range of offerings, Khan said. The software platforms will help determine how the spread may be occurring from other parts of the world, while work is starting with mobile data to understand social mobility across the country, according to Khan.“We have built the systems that are capable of supporting countries as they go through their own epidemic wave, from beginning, to middle, to end,” he said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Don't be tempted by these three companies that are cheap but dangerous: Western Forest Products (TSX:WEF), Air Canada (TSX:AC) and Suncor Energy Inc. (TSX:SU)(NYSE:SU).The post Warning: These 3 Companies Are Cheap but Dangerous appeared first on The Motley Fool Canada.
Updated text: The April 1 st flight to Peru is still being planned and not yet currently scheduled. A new special flight is scheduled from Algeria Additional flights are expected from Ecuador and Peru ...
(Bloomberg) -- They’d just bet millions on a hotel makeover, were waiting tables while pursuing their dream, or toiling in an already tough oil market.Canadians have seen their world upended in a matter of days as the coronavirus shuts down huge swaths of the economy. Now, they’re trying to figure out how to make ends meet and negotiate a maze of government websites to access billions of dollars in promised support.“We know that for many of you the past few weeks have been heartbreaking” Prime Minister Justin Trudeau said on Friday, as he announced an increase in wage subsidies for small businesses. “We’re helping companies keep the people on the payroll so the workers are supported and the economy is positioned to recover from this.”From Calgary to Montreal, here are their tales.Regina: Layoffs and Brides in TearsFour months ago, Ryan Urzada reopened the Atlas Hotel in Saskatchewan’s capital city after a C$10 million ($7.1 million) renovation that included a new indoor water park. Now he has laid off all but 20 of his 138 staff to keep the 200-room hotel afloat.About C$1 million worth of bookings evaporated in a few days as virus restrictions began, including from three brides in “absolute tears,” said Urzada, 46, who took over the hotel from the Travelodge chain.His biggest priority is helping his employees negotiate an employment insurance system that’s completely overloaded. With bill deferments, he figures he’ll be able to hang on for two or three months. But he worries longer term.“The cash flow requirement this fall when all these bills come due for the whole economy is going to be overwhelming,” he said, suggesting that deferrals are going to have be turned into forgiveness. “You can defer all you want but everyone’s going to have their hands out in September.”Montreal: Restaurant Workers in NeedMandatory closures hit restaurants in Montreal, Quebec, a city known for its bustling food scene. A day after setting up a relief fund to help industry workers meet their most pressing needs, organizers had to close applications because there were too many to process. The group drew a line at 349 people and raised C$41,500 on its GoFundMe page over a few days, but emails keep coming in.“We have some really heartbreaking pleas for help,” said Jessica Cytryn, one of the organizers. “One of our members word-searched our emails to find people who said that they hadn’t eaten in a few days and went out and bought food, and brought it to their homes.”Applicants to the fund include Robin Wattie, a 36-year-old musician who saw her European tour canceled and lost her bar tending and waitressing jobs. She’s awaiting a response to her application for unemployment benefits but worries she should have filed for provincial assistance instead.For now she makes do with a tiny cash stash and her credit card, and plans to ask for a new income replacement announced this week by Trudeau that gives $2,000 a month.“It’s like this big stressful puzzle,” she said.Calgary: A Blow for Sioux NationPaul Poscente has been getting calls every hour from his oil and gas clients, canceling projects.His company, Backwoods Energy Services, provides a variety of services, including clearing timber and brush from work sites and building access roads and bridges. He’s now expecting a 30% to 50% decline in business as Alberta takes the hit from the Russian-Saudi oil price war. Backwoods is preparing a round of layoffs, wage rollbacks and expense cuts.The prospect is wrenching for Poscente, the chief executive officer, because Backwoods is 70%-owned by the Alexis Nakota Sioux Nation near Edmonton, Alberta. It employs about 300 workers from the community, and its C$140 million in annual revenue provides its largest independent source of funds.”It feels like I’m doing a disservice to my family,” Poscente said. “It’s materially devastating to the community, and it feels personal.”Still, Poscente, 57, said the company has grown with an “ultra-conservative” balance sheet since he took over as CEO in 2015 and expects it to withstand the economic troubles better than most competitors.Toronto: Air Attendant GroundedFlight attendant Maxime Audet got notice a week ago he’d be laid off from Air Canada Rouge on April 3. “The main thing on my mind is that I don’t know how long it’s going to be for,” said Audet, 28, who is also a rep for the Canadian Union of Public Employees, which represents flight attendants. “It really adds to the stress.”Audet has immediately cut back. He’s reduced automatic savings to his retirement account for his final paychecks and is being careful what he buys at the grocery store. He worries about the wedding he’s planning next year but takes comfort from the fact that with five years under his belt, he’s senior to 62% of Air Canada staff, thanks to a big hiring spree at the airline in recent years.“I’m definitely worried about the lasting impact it will have on airlines,” he said. “Will we see people doing less travel, which could definitely affect staffing levels over time?”Toronto: Scared for the HomelessOutside the Church of the Redeemer on Toronto’s Mink Mile, one of Canada’s ritziest shopping districts, the drop-in lunch program had plenty of customers.On a normal day, The Common Table provides about 80 lunches to the city’s must vulnerable residents, but with similar programs closing, the number has spiked.“There’s a good 20% increase in the last few days,” Justin Laflamme, a church custodian who helps out at the program, said. “I spent a couple of years on the street as well so I recognize the faces and they’re not regulars of our program.”As the virus spreads, he expects things to get worse.“It can happen overnight for some people,” Laflamme said of the slide into homelessness. “It depends on their circumstances, what level of nest egg they have and what their income is. Someone at the low end of the curve can find themselves at the Ontario Works office within a week if they’re living paycheck to paycheck.”(Updates with more detail in flight attendant section. An earlier version of this story corrected spelling of custodian’s name in final section.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Air Canada (TSX:AC)(TSX:AC.B) stock surged 40% this week. However, this should not be thought of as a road to recovery just yet.The post Air Canada (TSX:AC) Stock Soared 40% This Week: Time to Buy? appeared first on The Motley Fool Canada.
(Bloomberg Opinion) -- Faced with an industry heading toward a wave of bankruptcies, an investor’s first instinct is often turning to the first three pages of the financial statements.How much cash does the business have on hand, and what inventories and due payments can be used to meet short-term debts? What assets does it have, and how productive are they in generating earnings?Singapore Airlines Ltd.’s announcement Friday of a shock-and-awe sale of new shares and convertible bonds worth up to S$15 billion ($10.5 billion) suggests that the clues about who will survive the virus-induced crisis sweeping the airline industry are further back.Don’t look to the balance sheet and statements of income and cashflows: The answer, as we’ve argued, is buried in the list of major shareholders that most companies include toward the end of their annual reports.There isn’t an airline on the planet that would be able to hunker down and survive the worst-case scenario for the Covid-19 pandemic — an 18-month-plus shutdown of much of the global aviation industry.Take one rough-and-ready measure, the cash ratio, which is the ability to pay for liabilities over the next 12 months out of cash and easily sold securities. Of the 29 largest carriers by revenue, not a single airline can boast a cash ratio higher than one, meaning they’d all run short of money before satisfying their creditors.If less reliable short-term assets such as receivables and inventories are deployed, things improve a little, bringing Ryanair Holdings Plc, Japan Airlines Co., ANA Holdings Inc. and Eva Airways Corp. above one.Alternatively, if you can cut general operating expenses and aircraft lease liabilities by, say, 60% and assume that all prepaid tickets are refunded with no drain on net assets, you can add Air Canada, IAG SA, JetBlue Airways Corp., Alaska Air Group Inc., and Southwest Airlines Co. to that group. On that sort of adjusted cash ratio, all of those carriers would have enough funds to see them through the year — but the rest of the global airline industry would go to the wall.That’s why having a rich patron is more important than ever. In the case of Singapore Air, the key player is state-owned investment fund Temasek Holdings Pte., which already owns 55% of the stock and may end up with far more if other investors don’t take up their entitlements under Friday’s cash call.Aviation has been a cornerstone of Singapore’s national development policy since the 1970s, both through Singapore Air and another Temasek investment, Changi Airport. Economic downturns — with Singapore’s growth contracting 10.6% in the first quarter — are no time for governments to shirk their commitment to long-term expansion, and SIA has been at the core of that vision.The S$5.3 billion equity issue will be the largest rights offering the global airline industry has ever seen, and implies drastic dilution for existing shareholders who don’t subscribe — especially once the S$9.7 billion bond tranche converts to equity 10 years from now. That prospect pushed the shares down more than 10% before recovering to a 3.5% drop midday.Still, the amount is so gobsmacking that it should put to rest any questions about Singapore Air's ability to weather this crisis. The S$15 billion total would be sufficient to cover two years’ worth of short-term liabilities at current levels, and is roughly equivalent to its entire market capitalization before the announcement.What does this mean for other airlines? The ones most at risk are those that neither have the relatively ample liquidity of the Japanese, North American and western European carriers mentioned above, nor the benefit of a friendly government shareholder or wealthy parent to bail them out.As Anurag Kotoky of Bloomberg News has shown by looking at another measure of bankruptcy risk, the truly vulnerable carriers make up a surprisingly short list with surprisingly few major names.Among the less-liquid carriers with a free float of more than 50%, Air France-KLM, Turk Hava Yollari AO, and SAS AB still retain government shareholdings that might be called upon to help out in a crisis; Qantas Airways Ltd. and Deutsche Lufthansa AG have a history of state ownership which may serve the same purpose; and Korean Air Lines Co. and Asiana Airlines Inc. have historically been indulged within South Korea’s chaebol system of conglomerates.The three most prominent players left — major U.S. carriers Delta Air Lines Inc., American Airlines Group Inc. and United Airlines Holdings Inc. — saw their shares surge this week after Congress moved through a bailout bill providing around $25 billion of support. Still, that amount would only cover about six months of liabilities, and their competitors would likely want a piece of the action too.Three low-cost carriers — EasyJet Plc, Norwegian Air Shuttle ASA and SpiceJet Ltd. — may also find themselves in a spot, dependent on the ability and willingness of their entrepreneurial founders to dig into their pockets if things get tight.There will be plenty of bankruptcies in aviation over the coming year, but this industry has always lived close to the edge. Most of the biggest players have gotten where they are by working their connections to governments and wealthy patrons to backstop their commercial ambitions. If one thing survives the crisis of coronavirus, it will be the strength of nation states.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.