Despite concerns over a potential economic slowdown, travel demand remains strong in Canada, something an analyst says should benefit Air Canada’s financial results.
National Bank Financial analyst Cameron Doerksen reiterated his "outperform" rating and $32 share price target for the Montreal-based airline this week, noting that the summer travel season is "still shaping up nicely." "We believe that the peak summer period for Air Canada will show strong financial results, and we expect that ongoing positive market conditions should drive meaningful earnings and cash flow improvement for Air Canada through the remainder of 2023 and 2024."
"Our own sampling of trans-Atlantic fares for peak periods in the upcoming summer also shows that fares on the busiest routes are up materially, both versus last year as well as versus summer 2019," Doerksen wrote.