Air Canada: Is it a good entry point based on recent news?

0
0

Hi Guys,

Seek your views in Air Canada performance moving forward?
I came across this news and would like to grab the opportunity before it shoots up…here is the headline>>>>>
“”””””Air Canada earnings: Airline ‘in recovery mode’ as revenue nearly triples, demand returns”””””

Marked as spam
Asked on November 6, 2021 2:21 pm
0 views
0
Private answer

The airline certainly is in recovery mode. However it's pretty important to not be swayed by flashy headlines. It's relatively easy, and probably somewhat expected, for a company like Air Canada to post 300% revenue growth on a year over year basis. When we look to a year ago, the company's revenue was practically non-existent due to lockdowns.

The company's balance sheet has deteriorated significantly, and it is still posting quarterly losses in excess of $600M. For me to be an investor in this company, I'd need to know that the pandemic will absolutely not impact travel in the future. Because I'm not sure Air Canada can handle more pandemic related restrictions.

I'd put Air Canada on a long term watch list right now. But, I wouldn't be purchasing.

Marked as spam
Posted by Dan Kent
Answered on November 8, 2021 11:09 am