A relative strenghtWith an oil price flirting with the 90 $'s the SP stand at 22,50$, a kind of resistance.
There are many tailwind and also many headwind on AC, it is interesting to see where the market will head.
Tailwind:
-Strong booking to date, traveling demand is still strong,
-strong results in 2023 including the Q3 (almost a certainty),
-fast deleveraging,
-Shortage of pilots, limiting the new flights expansion and keeping the seat offering at a lower level and offering full flights to airlines.
Headwind:
-Rates hikes, impacting personal finance of travelers; will they still be there in 2024 ? , at what pace?
- Pent-up demand was a one time phenomenom, consumed in 2023. Next year, will be a post-pent-up year.
-Oil prices hikes ; at 90$ it is a significant cost increase.
- Personnel shortages putting pressure on wages and costs.
- Limited number of flight to China ( far under the pre-pandemic volume).