FlyerTalk Forums - View Single Post - What drives Air Canada's stock price?
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Old Apr 21, 2022, 6:20 am
  #516  
Eagle2000
 
Join Date: Apr 2019
Location: YYZ
Programs: Aeroplan SE. AF-Plat
Posts: 607
Originally Posted by EdmFlyBoi
United, Delta, and American all expect to be profitable this year. AC's first quarter will be very interesting - seems that forward bookings are very strong based on limited availability and prices. It is trading about $24 and the average price target is around $30. Certainly seems positive. Good time to buy shares.
Personally I would like to see what their revenue from Business Class is before I invest and how it compares to pre-COVID. That is where all the profits are made in the airlines. Economy class revenue almost acts as a loss-leader....note I said almost, no flaming please,lol.

Another concern is how they hedged fuel prices, I recall that is the third or second largest expense.

Thirdly these high and fast climbs in oil prices (look at 2008) usually precede recessions....people will spend/travel less.

Buyer beware...
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