- Air Canada‘s first-quarter operating revenue was C$5.20 billion, slightly below the estimate of C$5.29 billion, marking a 0.6% decrease compared to the previous year.
- The airline reported an operating loss of C$108 million, compared to a profit of C$11 million in the same period last year.
- Adjusted EBITDA stood at C$387 million, which was 15% lower year-over-year but exceeded the estimated C$314.8 million.
- Adjusted loss per share was C$0.45, a greater loss compared to C$0.27 per share last year, but less than the estimated C$0.54 per share loss.
- The actual loss per share was C$0.40, compared to a loss of C$0.22 per share the previous year.
- Available seat miles were 24.24 billion, a 0.4% decline year-over-year and below the estimated 24.80 billion.
- Adjusted CASM (Cost per Available Seat Mile) increased by 3.2% year-over-year to C$0.1527.
- The company reported strength in sixth freedom revenues, Air Canada Cargo, and Air Canada Vacations, highlighting a sound revenue diversification strategy.
- Overall demand trends were stable despite changes in specific markets.
- Analyst ratings for the company included 14 buys, 2 holds, and 1 sell.
A look at Air Canada Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using Smartkarma Smart Scores predict a positive long-term outlook for Air Canada based on their scoring system. The company scores high in growth and resilience, indicating a strong potential for future expansion and ability to withstand economic challenges. With a moderate score in value, Air Canada appears to be reasonably priced in relation to its financial performance, making it an attractive investment option for those seeking growth opportunities.
However, the low score in dividends and momentum suggests that Air Canada may not be the best choice for income-focused investors or those looking for short-term market gains. Despite this, the overall outlook for Air Canada seems optimistic, especially considering its extensive coverage of domestic and international markets, offering a diversified range of services that position the company for continued success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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