Looking to buy Air Canada stock?
If you’re in Canada, you can buy Air Canada stock from most trading platforms. The two best major self-trading platforms that let you buy and sell Air Canada stock is Wealthsimple Trade and Questrade.
Best stock trading platforms in Canada that let you buy Air Canada stock:
About the company
Air Canada (TSX:AC) was founded in 1937 and is currently the largest airline in Canada when measured by fleet size and passengers carried per year. Headquartered in the Air Canada Centre in Montreal, they operate close to 600,000 flights per year to 207 destinations worldwide. Air Canada became fully privatized in 1989, and Canadians can buy and sell Air Canada stock on the Toronto Stock Exchange (TSX:AC).
Company Historical Performance
|Net Profits/Losses after tax (CAD/Mil)||−1,025||−24||−24||−249||131||10||105||308||876||2,038||167||1,476|
|Number of employees (average FTE)||24,200||22,900||23,200||23,700||24,000||24,500||24,400||24,900||26,100||27,800||29,900||32,900|
|Number of passengers (Mil)||33+||30+||32+||33.9||34.9||35.8||38.5||41.1||44.8||48.1||50.9||51.5|
|Passenger load factor (%)||81.4||80.7||81.7||81.6||82.7||82.8||83.4||83.5||82.5||82.3||83.3||83.4|
|Number of aircraft (at year end)||333||332||328||331||351||352||364||370||381||395||400||403|
|Total Liabilities Net Minority Interest||227,791,000||163,188,000||119,099,000||103,601,000|
|Total Equity Gross Minority Interest||93,404,000||62,060,000||43,549,000||27,709,000|
|Common Stock Equity||93,404,000||62,060,000||43,549,000||27,709,000|
|Capital Lease Obligations||52,573,000||39,791,000||16,292,000||13,183,000|
|Net Tangible Assets||73,406,000||43,257,000||24,891,000||10,988,000|
|Tangible Book Value||73,406,000||43,257,000||24,891,000||10,988,000|
|Ordinary Shares Number||503,000||498,000||491,000||484,000|
|Treasury Shares Number||24,000||23,000||23,000||23,000|
|Total Liabilities Net Minority Interest||27,198,000||23,359,000||15,164,000||14,319,000|
|Total Equity Gross Minority Interest||1,715,000||4,400,000||4,033,000||3,379,000|
|Common Stock Equity||1,715,000||4,400,000||4,033,000||3,379,000|
|Capital Lease Obligations||3,596,000||3,459,000||-||-|
|Net Tangible Assets||-2,692,000||125,000||3,318,000||2,750,000|
|Tangible Book Value||-2,692,000||125,000||3,318,000||2,750,000|
|Ordinary Shares Number||332,172||263,817||270,730||273,077|
Things to consider before you buy Air Canada stock
Is Air Canada stock (AC.TO) a buy or sell in 2021?
Travel demand plummeted in 2020 due to the Coronavirus, forcing Air Canada into a money-losing, cash-burning position all throughout the year. This is after years prior of strong financials and investing into future growth and streamlining operations.
In 2021, Coronavirus cases are still on the rise across Canada. Air Canada is not in a position where they can continue to burn more cash. On January 29, 2021, they were forced to fully refund thousands of customers’ flight tickets after the Canadian government cancelled all flights to 15 different destinations in the Caribbean and Mexico.
Due to COVID, Air Canada is burning through around $1 billion per quarter.
Air travel demand is still at an all-time low in 2021. As more and more travel restrictions popup, Air Canada is forced to cancel flights unexpectedly at the government’s request.
Moreover, with the rise of remote work and conferencing software replacing the need for physical meetings, business travel is likely to not return to its regular pre-covid state even after the pandemic subsides. Leisure travel may bounce back, but people’s fears of travelling to foreign nations will likely prevent any large spikes in travel demands.
The recent surge in Air Canada stock (TSX:AC) could likely be linked to the upcoming Q4 earnings reports on February 12, 2021. Investors are hoping for a strong Q4 that indicates Air Canada’s recovery and re-growth in Q1 of 2021. However, analysts do not share the same opinion. Air travel demand will likely remain low until at least Q4 of 2021. It may see a slight recovery in the first half of 2021 as performance may be better than the detrifying 2020 year. However, future outlooks on the stock are not on the optimistic side, at least for now.
Air Canada is not necessarily a bad stock to own. Long-term investors who are already in the stock could see significant upside when the pandemic is over and air travel returns to normal. However, until the Canadian government makes any permanent decisions regarding air travel, or provides further financial assistance to the airline industry, Air Canada is likely not the ideal stock to buy at the moment.
FAQ about Air Canada Stock
Where is the Air Canada headquarters?
7373 CÃ´te Vertu Boulevard West
Saint-Laurent, QC H4Y 1H4
Does Air Canada stock pay dividends?
There are no plans for Air Canada stock to pay dividends over the coming 12 month period.
Have Air Canada ever split their shares?
Air Canada has had zero stock split records in its history.
When does the fiscal year end for Air Canada?
The fiscal year for Air Canada ends in December.
Where can I buy Air Canada Stock (AC.TO) in Canada?
If you live in Canada, you can buy Air Canada stock from Wealthsimple Trade or Questrade.