This again ??Ben C over at Raymond James knows Jack Shite about the airline industry. Zero. He will copy and paste whatever he sees and then formulate a useless opinion.
Air Canada's mainline yields are actually higher than last year ! And Rouge is ( as planned ) at least 20% lower in cost than mainline. Hence , the expansion across the pond.
There is competition across the pond. Always has been. Who here gives a rats behind about Lufthansa ?? Pax have more options , more nonstop choices , lower fares. That's what everyone wants. So when AC started rouge , a plan was set in motion. And it's been a huge success for AC. Exactly what management set out to do HAS transpired. More flights , lower cost structure , more growth and recently good profits at AC .
someone mentioned American Airlines. So they dropped /reshuffled across the pond. Everybody does this . Birmingham England being dropped means nothing. But they just added Rome and Amsterdam from their fortress hub at DFW.
As far as fuel goes , AA does not hedge. So they get a better rate with the dollar, ok. But cost wise they have nothing which compares to Rouge. And yet still , AA is garnering a " Buy "
Last quarter AC destroyed Ben C 's EPS estimate. What does tell you ?
Raymond James indeed. Give me a break.