Globe figures Air Canada a buy under $132015-07-08 09:00 ET - In the News The Globe and Mail reports in its Wednesday edition Air Canada ($13.16) released exceptional first-quarter earnings results on May 12. The Globe's Jennifer Dowty writes the strong performance is expected to continue, although moderately, with good revenue growth and improved profitability. The company plans on expanding its lower-cost Rouge network, to additional international leisure routes. At the end of 2014, Rouge operated a fleet of 28 aircraft; the fleet is expected to reach 36 planes by the end of 2015. In terms of ancillary revenue, a new "premium economy class" offering, baggage fees, seat selection and WiFi connection fees are just a few of management's initiatives aimed to increase revenue. On July 7, the company reported strong June traffic results, with systemwide traffic increasing 10.1 per cent. The company can achieve cost savings from changes such as operating more cost-efficient aircraft, pension cost savings and stands to benefit from lower jet fuel prices. The stock delivered solid performance in 2013, 2014 and year-to-date. Ms. Dowty says if the stock price pulls back below $13, she would recommend buying shares for a diversified portfolio. Air Canada does not pay a dividend.