FlyerTalk Forums - View Single Post - What drives Air Canada's stock price?

Jul 22, 2020 | 9:18 am

#472

Adam Smith

Moderator, Air Canada; FlyerTalk Evangelist

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Quote:

Originally Posted by eagle215

AC makes the majority of it's money on Trans-pacific and Atlantic flights.

What's your basis for that? TATL + TPAC = 40% of AC's passenger revenues. AC doesn't disclose margins by region, but there's nothing to suggest that the margins are so much higher on those routes that they would make a majority of AC's profits.

Code:

AC 2019 passenger revenues ($MM)
Domestic:    $5,233 30.4%
Transborder: $3,795 22.0%
TATL:        $4,468 24.9%
TPAC:        $2,449 13.6%
Other:       $1,287 7.5%

(Other is essentially LatAm and Caribbean - South America and Sun destinations, in AC's parlance)

Quote:

Until borders open up AND people do not fear flying on long flights, the stock price for AC will be grim....

I don't disagree with that, as international flights (i.e. everything not domestic) are clearly a huge component, with domestic only being 30% of AC's business.

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