RE:losing patience Opportunity costs are possibly and probably the lowest they have been since Covid. Here are a few dynamics to ponder.
I addressed in an earlier post that Air Canada dodged a bullet when it pulled back from a deal to buy TRZ several years ago. TRZ is still buried in debt with a substantial percentage of their fleet grounded due to P&W engine flaws. They are in debt. Their new CEO just stated that the key to improving TRZ finances is creating FCF. It is very clear that AC figured that out years ago.
It is to the point that press releases from AC indicate that the right time to start paying back shareholders for standing by and waiting for their rewards is nigh. There is still that morning when we wake up to credit agencies declaring AC investment quality for holding debt and as an investment. The numbers are there.
In the mean time shorts are able to make their case with labor problems. Canadian border guards are just about in strike position and if they are allowed to act. Who is going to suffer more than airlines with international routings and connections. This should play out with a quick flurry this weekend.
More foreboding is the black cloud of the negotiation of the pilot's contract. Pilots have a hard time getting sympathy from the Canadian public as they are viewed as well paid. Arbitration is the best route to solve this dilemma.
As Morningside constantly points out, the airline is constantly vulnerable to such vagaries in their world. It always has been.
As the head of TRZ noted. Cash flow is the key. As is becoming clear cash will continue to flow at AC.
The process of being declared investment quality is a rigorous process as I am sure you know.