No one is flying right Tommy? What wil retard do about it?
Air Canada Declines 7%, ATB Says Capacity Cuts Reflect Pent-Up Demand
MIDNIGHTTRADER - Updated 46 minutes ago
10:09 AM EDT, 06/30/2022 (MT Newswires) -- Air Canada (AC.TO) declined 7% on Thursday, amid a broad and sharp selloff for the Toronto Stock Exchange, and following the Canadian airline's announcement that it is cutting summer capacity.
Air Canada issued a letter to loyalty members stating that current levels of travel have "unprecedented and unforeseen strains" and that it is taking steps to make "meaningful reductions" to its capacity in July and August to reduce passenger volumes to levels the "air transport system" can better accommodate.
ATB Capital Markets analyst Chris Murray said no financial details were disclosed, and media reports indicated a reduction of approximately 10% of flights, or about 150 flights per day in July and August, as well as the temporary suspension of three routes.
"While the announcement adds greater uncertainty to near-term performance and the length of time it could take to return to normal operations, we see the news reinforcing the level of pent-up demand in the system coming out of the pandemic, despite significant macroeconomic headwinds, which we expect to translate into a healthy demand environment over a multi-year period, including later in 2022 and into 2023," Murray said in a note to clients.
The analyst maintained an Outperform rating and $35 price target on Air Canada shares.
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