Air Canada T.AC

Capacity reduction

[lb1temporary]

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.

[TiredofWating]

It does seem that the markert had already priced in reduced capacity in 2021 (expecting this news) and that investors are looking at the recovery (let's get those vaccines delivered!!).

[Starsearcher80]

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." 

[red2000]

Agreed ! It's a good news ! Reduce operational cost for 1 to 3 months And jobs are not over foreever ! It's a temporary layoff ! As soon as fed gov take its economic responsibilities, airlines will try to fly safely !! I have to admit it's like put a square in a circle, but that's why we pay them big bucks to settle think like that ! Still LONGS !