Air Canada T.AC

Alternate Symbol(s): ACDVF

Industrials Airlines

Air Canada is an airline company. The Company is a provider of scheduled passenger services in the Canadian market, the Canada-United States (U.S.) transborder market and the international market to and from Canada. It provides scheduled service directly to more than 180 airports in Canada, the United States and internationally on six continents. The Company’s Aeroplan program is Canada's premier travel loyalty program, where members can earn or redeem points on the airline partner network of 45 airlines, plus through a range of merchandise, hotel and car rental rewards. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using its passenger and freighter aircraft. Its Air Canada Vacations is a tour operator, which is engaged in developing, marketing, and distributing vacation travel packages in the outbound/inbound leisure travel market. Air Canada Rouge is Air Canada's leisure carrier.

TSX:AC - Post by User

Air Canada > Capacity reduction

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Comment by Starsearcher80on Jan 13, 2021 3:26pm

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Post# 32287019

RE:Capacity reduction

Sometimes news that seems bad, is actually not bad at all. Consider the following:

1) Given the current status of the pandemic, it's no suprise whatsoever that capacity is lower for THIS quarter. This is about as surprising as saying "hey, this pandemic is bad right now, and it will probably be bad for the next month or two until vaccines really get rolling." That would suprise no one.

2) Personally, I'm happy with the reduction because it means flying less planes that really aren't making a profit anyway. Capital preservation HAS to be the order of the day, and AC has done a really good job I think on the whole. No disrepsect to the employees that this impacts. I do feel very sorry for you, and hope these jobs come back soon. Personally, I'm sure they will.

3) While this capacity reduction is to no one's suprise, it sure will be nice news to see AC INCREASE capacity. Now THAT will be an annoucement that the market will cheer. It's kind of twisted thinking in a way, but this reduction (that means nothing right now) leaves room for an even bigger capacity increase when it comes.

4) I go back to my previous post on Timing with the upcoming J&J vaccine (for the post, CLICK HERE ) I think the market is starting to look forward to the vaccine taking hold. I don't think the upcoming J& J announcement next week is priced in at all, but personally I think this will be the catalyst for the industry, and certainly for AC to begin a full shareprice recovery without the constant retracement of the past few months.

As for myself, buying more.

lb1temporary wrote: Air Canada will be reducing approximately 25 per cent of its planned capacity for the balance of the first quarter of 2021. With this reduction, capacity in the first quarter of 2021 will be about 20 per cent of what Air Canada operated in the first quarter of 2019.
Today's news release

Only 20% the 2019 capacity for all the quarter; its very low.

The most important thing is not the news but the share price reaction.

My bet: I'm not sure that the 20$ will be reach. Investors are already looking to the post pandemy.