Bullboard - Stock Discussion Forum Air Canada T.AC

Alternate Symbol(s): ACDVF

Industrials Airlines

Air Canada is an airline company. The Company is a provider of scheduled passenger services in the Canadian market, the Canada-United States (U.S.) transborder market and the international market to and from Canada. It provides scheduled service directly to more than 180 airports in Canada, the United States and internationally on six continents. The Company’s Aeroplan program is Canada's... see more

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TSX:AC - Post Discussion

Air Canada > My first look : There is something for everyone

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Post by Tempo1 on Dec 17, 2024 8:45am

My first look : There is something for everyone

Bulls and bears will have something.

In an operational perspective, it is interesting with growth ahead. Helped by demographics and gegraphy (6 th freedom), AC show a growth strategy that could bring EBITDA almost at 6 B$.

But in a balance sheet perspective it is only CAPEX and CAPEX. FCF will be minimal for 3 years ahead and the debt ratio will stand at 2X; not sure that they wil get the investment grade level.

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Comment by Veecee1 on Dec 17, 2024 9:11am

AC liquidity 15B leverage ratio currently .9 , UAL 17B liquidity LR over 2 UAL has investment Grade

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Comment by Tempo1 on Dec 17, 2024 9:44am

Yep, The financial position is very good, but the debt ratio will increase from 0,9 to 2X. But the most important is that with a breakeven FCF there is little room for unnexpected. They would have to delay the CAPEX program if the results are lower; not a high quality room. All this after increasing the debt level to 2X. I am not sure that credit agency will give the BBB rating with a ...more

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