RE:RE:losing patienceAgreed. FCF is the key. No amount of capex can be a problem if FCF is higher. AC is going to generate FCF year over year sustainably, allowing them to buying back shares and thus generating consistently higher FCF/share.
Their capex is all about improving margins (FCF) and revenue (EBITDA). Both metrics will improve leverage ratio, freeing up cash for further investments and rewarding shareholders. This will attrach more institutional investors providing stability to share price.
One can keep arguing about the demand, but airlines are managing very tight capacity (lower than pre covid) leading to strong yields. And Canadian population base (customer base) has increased disproportionately in the same time period.
AC has not reached here by luck. This has been a carefully planned strategy from 2010s, by which they boldy faced covid and repositioned their operating model to new business enviroment, which supports premium travel (and not low cost travel).