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For Air Canada and plenty of other stocks, uncertainty can be a good thing

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A recovery tends to begin long before good news arrives

) settled a long-simmering labour dispute with its pilots’ union this week, averting a potential strike that could have begun as soon as Sept. 18, the stock rose 3.5 per cent.

Perhaps. But the more compelling case is that some intrepid investors recognized that uncertainty was depressing Air Canada’s share price, which was down 27 per cent since the start of May. Just about any resolution to the labour dispute would prove to be a turning point for a rebound. Though still well off its highs two years ago, the laggard has become a solid performer over the past three months.

Yet, a settlement between Air Canada and its pilots raised another kind of risk: that the airline would end up caving in to union demands by offering large pay hikes.

 

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Business Matters: Air Canada prepares for partial shutdown ahead of looming pilot strikeAir Canada is working on plans to start suspending operations ahead of a looming pilot strike, the carrier said in a statement Monday morning. Unless a settlement is reached by Sunday, either Air Canada or the Air Line Pilots Association (ALPA), which represents 5,200 Air Canada pilots, could issue a 72-hour lockout or strike notice.
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