What is driving the AC stock surge?

In the last 2 weeks AC has surged from $16 to $23.55. To my knowledge there has been no announcement affecting corporate structure or an airline bailout. AC has been under valued from it’s high in Mar 2020 of $54, but realistically Canadians won’t be flying in large numbers until summer 2021. So what gives?

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Asked on November 24, 2020 3:46 pm

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Hi Stephen,

This is all likely as a result of the recent COVID-19 Pandemic vaccine announcements. It is a positive step towards a return to normalcy. However, this is not going to be an overnight process and it will take months until a good portion of the general population receives the vaccine. Most of the markets are either jumping or being punished because of the vaccine announcements - we think this is purely momentum driven. To your point, we won't be seeing a return to normal airline activity for some time. In fact, Air Canada's CEO said they probably wont return to 2019 levels until 2023. That is three years of uncertainty.

Mat

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Posted by Mathieu Litalien

Answered on November 25, 2020 4:22 am

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