AC.TO - Air Canada
| Previous Close | 44.45 |
| Open | 44.20 |
| Bid | 42.23 x N/A |
| Ask | 42.24 x N/A |
| Day's Range | 41.86 - 44.24 |
| 52 Week Range | 30.86 - 52.71 |
| Volume | 3,264,821 |
| Avg. Volume | 1,209,710 |
| Market Cap | 11.128B |
| Beta (5Y Monthly) | 0.81 |
| PE Ratio (TTM) | 7.77 |
| EPS (TTM) | 5.43 |
| Earnings Date | Apr. 30, 2020 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | 56.50 |
- Thomson Reuters StreetEvents
Edited Transcript of AC.TO earnings conference call or presentation 18-Feb-20 1:30pm GMT
Q4 2019 Air Canada Earnings Call
- The Canadian Press
Air Canada says 737 Max grounding, coronavirus to hurt first-quarter earnings
MONTREAL — Air Canada is bracing for a rough first quarter as the effects of the novel coronavirus and the continued grounding of its fleet of Boeing 737 Max jets bite into sales.The company lost roughly 25 per cent of its narrow-body fleet after authorities around the globe banned the Max in March following two fatal crashes. Last month, Air Canada halted all flights to mainland China and its Toronto-Hong Kong route due to the spread of COVID-19, a virus that has led to mass quarantines in China and caused more than 1,800 deaths.The dual blows mean adjusted earnings in the first quarter of 2020 are expected to generate about $200 million less than a year earlier, or about one-third lower than the $583 million in earnings before interest, taxes, depreciation and amortization (EBITDA) in the first three months of 2019."Certainly the biggest, largest item is the absence of the Max. And certainly there is some impact from not flying to China for two months of Q1," said chief financial officer Michael Rousseau.Extra costs stem partly from backfilling one of Air Canada's most efficient aircraft with Embraer 190s and Airbus A320s, which have lower fuel economy and carry lighter loads. The expense of leasing those planes and paying about 400 Max pilots who are not trained to fly other jets in the fleet adds to the burden.Air Canada hopes to start reintroducing Maxes late in the third quarter, though it will not receive all 26 Max 8s it was slated to have on the tarmac by this summer — on top of the 24 now sitting in hangars — until well into next year, the company has said.Air Canada routes connecting Beijing and Shanghai to Toronto, Vancouver and Montreal comprise about six per cent of its available seat miles, a metric that measures an airplane's revenue-generating carrying capacity. The Hong Kong-Toronto route makes up between one per cent and two per cent, Rousseau said.Air Canada forecasts the routes — suspended through March at the moment — will be active again with normal ridership by the third quarter, based on analyses of previous epidemics."The analysis is imperfect because each one of these viruses is different than the last," chief executive Calin Rovinescu said on a conference call with analysts."While we certainly appreciate the amount of anxiety that there is out there now, especially in China, we've seen other of the Asian markets still being relatively strong at this stage, not seeing them fall off a cliff...We're hopeful that that continues."The deadly virus also had "massive implications" for schedule changes and last-minute rebookings, said senior executive Lucie Guillemette.The slew of cancellations and new bookings in the past three weeks compounded problems arising from a new booking system — launched exactly three months before the earnings call — that continues to give customers headaches following a hectic holiday travel season."Our call centre wait time is still long," said senior executive Lucie Guillemette. "We did see some revenue impact as a result."The revenue hit resulted not from a reservation system that hampered bookings, but because "we chose to waive some of the fees in order to reduce some of the friction for our customers," she said.The airline introduced the reservation system on Nov. 18, triggering a barrage of social media complaints from passengers who had difficulty accessing their booking information or reaching customer service agents."The introduction of a new reservation system, something we last did 25 years ago, is tantamount to a heart and lung transplant for an airline," said Rovinescu, stating that "residual effects" are a given.Air Canada forecasted an adjusted earnings margin of 19 per cent for 2020, yielding a slight bump in adjusted earnings from last year's $3.64 billion and nearly five per cent below consensus, according to RBC Dominion Securities analyst Walter Spracklin.The outlook came as the Montreal-based company reported fourth-quarter results that came up short of analyst predictions.Profits of $152 million or 56 cents per diluted share fell 57 per cent below expectations, according to financial markets data firm Refinitiv. They compared favourably, however, with a net loss of $360 million or $1.33 per diluted share in the fourth quarter of 2018.Colin Cieszynski, chief market strategist at SIA Wealth Management, called the results "disappointing," though others viewed the recent turbulence as short-term."These are temporary events and the company is in an excellent balance sheet position to weather the associated impact," Canaccord Genuity analyst Doug Taylor said of the Max grounding and COVID-19 epidemic.The fourth quarter of 2019 included foreign exchange gains of $92 million while the last three months of 2018 included foreign exchange losses of $444 million.On an adjusted basis, Air Canada says it earned $47 million or 17 cents per diluted share in the fourth quarter of 2019 compared with an adjusted profit of $55 million or 20 cents per diluted share in the fourth quarter of 2018.Analysts on average had expected an adjusted profit of 38 cents per share for the quarter, according to Refinitiv.Operating revenue totalled nearly $4.43 billion, up from nearly $4.23 in the same quarter a year earlier.Full-year revenue rose six per cent year over year to $19.13 billion and full-year net income increased exponentially to $1.48 billion from $73 million in 2018. This report by The Canadian Press was first published Feb. 18, 2020.Companies in this story: (TSX:AC)Christopher Reynolds, The Canadian Press
- The Motley Fool
Air Canada (TSX:AC) Stock: Should You Buy Now or Later?
Airlines like Air Canada (TSX:AC)(TSX:AC.B) stock can be some of the most under-the-radar value stocks that could generate outperforming returns. Here's what you can do with Air Canada stock.
- Yahoo Finance Canada
Air Canada says coronavirus, 737 Max grounding will drag earnings down
Air Canada says the grounding of the Boeing 737 Max aircraft and the impact of the recent coronavirus outbreak will drag down its earnings in the first quarter of 2020.
- Baystreet
Futures Stumble to Begin Short Week
Stock futures pointed to a lower open for Canada's main equity index on Tuesday, as oil prices slipped ...
- CNW Group
Air Canada Reports 2019 Annual Results
Record operating revenues of $19.131 billion Operating income of $1.650 billion EBITDA of $3.636 billion and EBITDA margin of 19 per cent Record unrestricted liquidity of $7.380 billion and leverage ratio ...
- The Motley Fool
A Canadian Stock to Sell Immediately!
Air Canada (TSX:AC)(TSX:AC.B) is facing a new slate of risks at a time where its valuation is historically rich.
- The Motley Fool
This 1 Aerospace Stock Can Fly Higher Than Air Canada (TSX:AC)
Air Canada (TSX:AC)(TSX:AC.B) is fresh from an incredible performance in 2019, but a repeat performance is doubtful. Another name in the airline industry, however, is off to a great start and should be one of the exciting investment prospects. With the airline industry facing some headwinds lately, aerospace and defense stock Heroux-Devtek (TSX:HRX) might be […]
- CNW Group
Drone Delivery Canada Announces Showcase at the Canadian International AutoShow's "Future Tech Hub"
TORONTO, Feb. 6, 2020 /CNW/ - Drone Delivery Canada Corp. (TSXV: FLT, OTC: TAKOF) (the "Company" or "DDC") is pleased to announce that it has been invited to display the Sparrow, the Robin and the Condor delivery drones at the Canadian International AutoShow's Future Tech Hub. The AutoShow Future Tech Hub, which can be found on the main manufacturer floor on the 800 level in the South Building of the Metro Toronto Convention Centre downtown Toronto, will bring together several elements that offer a glimpse into the future of transportation. "Technology is changing the way we do almost everything, and some of those impacts will be encapsulated in the Future Tech Hub, a special installation at the AutoShow showcasing some of the new and innovative technologies transforming the world of transportation," said Michael Zahra, President & CEO of DDC.
- CNW Group
Air Canada to offer Customers the Convenience of PayPal for Purchasing Tickets in Canada
Air Canada to offer Customers the Convenience of PayPal for Purchasing Tickets in Canada
- The Motley Fool
The 3 Best TSX Stocks of 2019: Buys in 2020?
Shopify Inc (TSX:SHOP)(NYSE:SHOP) outperformed in 2019 and may still have a ways to go in early 2020
- The Motley Fool
Millennials: 3 Growth Stocks That Could Double Your Money in 2020
Millennials can double their savings in 2020 through growth stock investing. Air Canada stock, Summit Industrial stock, and Well Health stock are the top options to achieve the goal.
- The Motley Fool
Why the Air Canada Stock Price Fell 8.6% in January
Air Canada (TSX:AC) stock price falls in January due to mounting risks, making my Air Canada stock prediction for 2020 a negative one.
- The Motley Fool
Coronavirus Fears Might Beat Down These 2 Stocks
Travel stocks like Air Canada (TSX:AC.B) are impacted by negative headlines and might be hit hard in the coming months if the coronavirus continues to spread.
- The Canadian Press
Air Canada plane lands safely in Madrid after tire rupture, engine issue
An Air Canada jet landed safely in Madrid Monday after engine trouble and a blown tire forced pilots to declare an emergency shortly after takeoff.The Toronto-bound Boeing 767-300 carrying 128 passengers and eight crew touched down safely after circling southeast of Adolfo Suarez-Barajas airport for four hours "to use up fuel and lighten the aircraft for landing," Air Canada said.The engine issue occurred shortly after takeoff in Madrid, the airline said in a statement. "A tire also reportedly ruptured on take-off, one of 10 on this model of aircraft."A spokesman for Spanish airport operator AENA said the pilot radioed the tower about 30 minutes after takeoff to request a slot for emergency landing."Our pilots are fully trained for this eventuality," Air Canada said in an email. "Nonetheless, an emergency was declared in order to obtain landing priority."Spain's Defence Ministry said an F-18 fighter jet was dispatched from a military airport near the Spanish capital to evaluate the damage done to the landing gear of Air Canada Flight 837.A spokesman for Enaire, Spain's air navigation authority, said the plane's landing gear did not fold up properly after taking off and that a piece of it may have damaged part of one of the engines.The officials were not authorized to be named in media reports.Benoit Gauthier, a retired Air Canada pilot, said defective wheels are "very rare...I was with Air Canada 37 years, and I think we ended up having a flat tire once."He said the tire rupture and engine problem are "most likely" connected."When a tire ruptures on takeoff, there's always a remote chance that it explodes and some part of the rubber ends up in the engine," he said in a phone interview.The engine issue likely triggered the return to airport, while using up fuel makes for a lighter load on a plane that lacks the power of its second turbine, Gauthier said."If you've lost an engine, you don't want to cross the Atlantic. You want to land," he said.Guido Fioravantti, whose father was on the plane, confirmed the safe landing from New York."Landed safely, everything is ok!" Fioravantti said.All passengers will be provided with hotel rooms and rebooked on other flights, Air Canada said.Gilles LeVasseur, a professor of business and law at the University of Ottawa, said Air Canada should review safety protocols for the tires and their manufacturer to avoid future ruptures.Landing gear malfunctions can pose a grave challenge for the pilot. In 2005, a JetBlue pilot circled for hours to burn off fuel as he grappled with front wheels that were stuck in a sideways position, culminating in a harrowing touchdown that saw the nose tires ignite along the runway at Los Angeles International Airport. No one was hurt.Spain's El Mundo newspaper's website published audio it said featured the plane's pilot explaining to the passengers the need to return to Madrid because a wheel had been damaged during the takeoff."Because we are a bit too heavy we have to get rid of fuel before being able to land," the voice can be heard saying in Spanish.Madrid residents posted videos online showing a plane flying unusually low over the Spanish capital's centre and suburbs.It was the second incident of the day at Madrid's international airport, the busiest in the country. Earlier on Monday, the airport closed for more than an hour due to the reported sighting of drones in the vicinity.This report by The Canadian Press was first published Feb. 3, 2020.— With files from The Associated PressCompanies in this story: (TSX:AC)Christopher Reynolds, The Canadian Press
- The Canadian Press
Most actively traded companies on the TSX
TORONTO — Some of the most active companies traded Monday on the Toronto Stock Exchange:Toronto Stock Exchange (17,379.76, up 61.27 points.)Bombardier Inc. (TSX:BBD.B). Industrials. Up seven cents, or 5.69 per cent, to $1.30 on 9.2 million shares.Aurora Cannabis Inc. (TSX:ACB). Health care. Up 16 cents, or 6.4 per cent, to $2.66 on 6.55 million shares.Kirkland Lake Gold Ltd. (TSX:KL). Materials. Down 37 cents, or 0.68 per cent, to $53.90 on 6.1 million shares.Crescent Point Energy Corp. (TSX:CPG). Energy. Down 14 cents, or 3.21 per cent, to $4.22 on 5.9 million shares.Detour Gold Corp. (TSX:DGC). Materials. Down 60 cents, or 2.53 per cent, to $23.10 on 5.2 million shares.Trevali Mining Corp. (TSX:TV). Materials. Down two cents, or 10.26 per cent, to 17.5 cents on 4.2 million shares. Companies in the news:Air Canada (TSX:AC). Up 45 cents to $44.78. A Toronto-bound Air Canada plane made an emergency landing at Madrid's international airport on Monday after pilots reported an engine problem and tire rupture shortly after takeoff. The Boeing 767-300 carrying 128 passengers and eight crew touched down safely after circling southeast of Adolfo Suarez-Barajas airport for four hours "to use up fuel and lighten the aircraft for landing," Air Canada said. The engine issue occurred shortly after takeoff in Madrid, the airline said in a statement. Ignacio Montesinos, a spokesman for Spanish airport operator AENA, said the pilot radioed the tower about 30 minutes after takeoff to request an emergency landing slot.Teck Resources Ltd. (TSX:TECK.B). Up 12 cents to $17.22. The Vancouver-based mining company proposing to build the massive Frontier oilsands mine in northeastern Alberta has set a target to be "carbon neutral" by 2050. Teck Resources Ltd., which is awaiting a decision from the federal government on Frontier expected this month, says it will try to achieve its goal by first avoiding the production of emissions and then by minimizing or eliminating what it does produce. It says it will look at alternative ways of moving materials at its mines, using cleaner power sources and implementing efficiency measures, while producing more metals including copper for electric vehicles and renewable power generation.BlackBerry (TSX:BB). Up 20 cents or 2.5 per cent to $8.26. BlackBerry Mobile says TCL Communication will no longer be making or selling BlackBerry-branded mobile devices. The company signed a brand licensing and technology support deal with TCL Communication in December 2016 as part of its plan to stop making smartphones and focus on software. Under the terms of that agreement, BlackBerry licensed its security software and service suite, as well as related brand assets to TCL Communication. However, BlackBerry tweeted today that TCL Communication will no longer sell BlackBerry-branded mobile devices as of Aug. 31. TCL Communication also has no further rights to design, manufacture or sell any new BlackBerry devices.Torstar Corp. (TSX:TS.B). Up six cents or 15 per cent to 46 cents. Torstar Corp. has signed a deal to sell the land and building used by the Hamilton Spectator newspaper for $25.5 million. The sale follows a move by Torstar last spring to close its Hamilton printing and mailroom operations. Torstar said last year that if the property was sold it expected the Spectator will continue to operate a head office in a new location in the Hamilton area. The sale is subject to customary closing conditions and adjustments and is expected to be completed in the first quarter of this year. Torstar publishes the Toronto Star as well as six regional daily newspapers in Ontario, including the Spectator, and more than 80 weekly community newspapers in Ontario.Aecon Group Inc. (TSX:ARE). Up 15 cents to $17.36. Aecon Group Inc. has signed a deal to acquire Voltage Power, an electrical transmission and substation contractor based in Winnipeg. Under deal, Aecon will pay $30 million in cash, with additional payments possible based on achieving minimum financial targets over the next three years. Aecon chief executive Jean-Louis Servranckx says Voltage Power is the third strategic, tuck-in acquisition Aecon has made over the past 18 months. The acquisition helps expand Aecon's capabilities to perform medium to high-voltage transmission and distribution work. Aecon says Voltage Power has had average annual revenue of approximately $60 million over the past three years.This report by The Canadian Press was first published Feb. 3, 2020. The Canadian Press
- Simply Wall St.
Should You Be Impressed By Air Canada's (TSE:AC) ROE?
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...
CNW GroupAir Canada Is Named a Top Employer in Montreal for the Seventh Consecutive Year
MONTREAL , Jan. 30, 2020 /CNW Telbec/ - Air Canada today was named one of " Montreal's Top Employers" for the seventh consecutive year in Mediacorp Canada Inc's annual employer survey. The 2020 survey recognizes companies in Montreal with exceptional human resources programs and forward-thinking workplace policies, and includes a comparison of others in their industry and region.
- The Motley Fool
TFSA Investors: Can This Top TSX Stock Outperform Long Term?
After 15 years of poor price performance, Air Canada (TSX:AC)(TSX:AC.B) is now a top 2019 performer. Can the airline stock keep up the momentum in 2020?
- The Canadian Press
Air Canada suspends all direct flights to China as coronavirus spreads
MONTREAL — Air Canada is halting all direct flights to China following the federal government's advisory to avoid non-essential travel to the country due to the coronavirus epidemic.The abrupt suspension — effective Thursday and slated to last until Feb. 29 — threatens to dent revenues as the airline scrambles to regroup amid the disruption."It definitely will have a commercial impact. There’s no doubt about it. China is a major market for Air Canada," said John Gradek, a lecturer at McGill University and head of its Global Aviation Leadership Program.Canada's largest airline, the carrier makes 33 flights a week to Beijing and Shanghai from Vancouver, Toronto and Montreal. The potential for longer-term harm looms if travel demand stays near ground level into the spring.More than 50 million people in 17 cities are now under under lockdown as China rolls out quarantine measures unprecedented in modern history.Air Canada said Wednesday it had begun to cancel select flights as customers delayed trips and called off travel plans due to fears of the spreading epidemic.“Three or four hours later, everything shut down," Gradek said. "It kind of shows you the degree to which this is a very, very fluid situation."Affected customers will be notified and offered options that include travel on other carriers where available, or a full refund, Air Canada said.The carrier is also waiving rebooking fees for flights that go through a partner airline to the Chinese city of Wuhan, the epicentre of the virus, until March 29.Canada has looked increasingly to East Asia as a growth market, with the number of annual visitors to Canada from China shooting up by a factor of 10 since 2000 to 757,000 in 2018.Air Canada has seen its shares fall by about 10 per cent since authorities on Jan. 20 confirmed human-to-human transmission of the illness, which has caused 132 deaths and infected more than 6,000 people.The Montreal-based carrier said in a statement that it remains in consultation with the Public Health Agency of Canada, Transport Canada, and Global Affairs and will adjust its schedule as appropriate."Air Canada regrets this situation and apologizes for the serious disruption to our customers' travel plans."China Southern Airlines and China Eastern Airlines, which fly into Vancouver, Toronto and Montreal, have not announced plans to halt flights to Canada.The novel coronavirus has killed 132 people and infected more than 6,000 on the Chinese mainland and abroad.Foreign Affairs Minister Francois-Philippe Champagne says Canada has a plane preparing to fly Canadians out of the province in China at the centre of an outbreak of a new coronavirus.This report by The Canadian Press was first published Jan. 29, 2020.Companies in this story: (TSX:AC)Christopher Reynolds, The Canadian Press
- CNW Group
Air Canada Suspends Flights to Beijing, Shanghai
Air Canada Suspends Flights to Beijing, Shanghai
