Comment We've seen such a sharp selloff that I don't think it's fully justified," AltaCorp Capital Inc analyst Chris Murray said.
Canada's airline industry is healthy, he said, based on recent traffic data and executive comments on forward booking.
What's more, Air Canada can cut costs and increase revenue, through surcharges and higher ticket prices. The airline's vacations arm added a C$35 surcharge to trips starting on Monday.
RBC Capital Markets analyst Walter Spracklin said the steep currency drop represents a buying opportunity, in part because there is a natural hedge between a stronger U.S. dollar and lower jet fuel prices.
"The bottom line is that forex fluctuations, cold weather in Canada ... are not reasons to sell," Spracklin wrote in a note to clients.