Air Canada (OTCMKTS:ACDVF) Reaches New 1-Year High Following Better-Than-Expected Earnings

Air Canada (OTCMKTS:ACDVF)’s stock price hit a new 52-week high during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $19.21 and last traded at $19.20, with a volume of 4585 shares trading hands. The stock had previously closed at $18.48.

The company reported $0.29 earnings per share for the quarter, beating analysts’ consensus estimates of $0.11 by $0.18. The business had revenue of $4.41 billion for the quarter, compared to analyst estimates of $4.34 billion. Air Canada had a net margin of 1.82% and a return on equity of 21.51%.

Key Stories Impacting Air Canada

Here are the key news stories impacting Air Canada this week:

• Positive Sentiment: Air Canada agreed to sell a 25% non-controlling stake in its Aeroplan loyalty program to Blackstone, La Caisse and other Canadian institutional investors for C$2.5 billion. The deal values Aeroplan at approximately C$10 billion, while Air Canada retains control of the program’s strategy and operations. The proceeds are expected to strengthen the balance sheet and support the company’s goal of achieving an investment-grade credit rating. Air Canada Announces $2.5 Billion Minority Equity Investment in Aeroplan Led by Blackstone and La Caisse
• Positive Sentiment: Second-quarter adjusted EBITDA reached $719 million, at the high end of management’s guidance, while operating revenue hit a record $6.3 billion on strong travel demand. The company also generated $651 million in operating cash flow, providing evidence of resilient underlying operations. Air Canada Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Air Canada reported quarterly earnings of $0.29 per share, exceeding the $0.11 analyst consensus, and revenue of $4.41 billion versus estimates of $4.34 billion. Scotiabank also upgraded the stock from “hold” to “strong buy,” adding to bullish sentiment. Air Canada Beats Q2 Earnings and Revenue Estimates
• Negative Sentiment: Air Canada posted a $215 million operating loss, including $388 million in labour-related and other charges, and lowered its full-year outlook. Jet fuel costs have risen nearly 50%, creating a significant risk to margins and earnings despite strong passenger demand. Air Canada Posts Loss and Lowers Guidance as Fuel Costs Soar

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the company. Scotiabank raised Air Canada from a “hold” rating to a “strong-buy” rating in a report on Tuesday. BMO Capital Markets reiterated an “outperform” rating on shares of Air Canada in a report on Wednesday. National Bank Financial reissued an “outperform” rating on shares of Air Canada in a research report on Wednesday. Finally, Zacks Research upgraded Air Canada from a “strong sell” rating to a “hold” rating in a research note on Tuesday, May 19th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, Air Canada currently has an average rating of “Moderate Buy”.

Air Canada Stock Performance

The firm has a fifty day simple moving average of $17.14 and a 200-day simple moving average of $15.13. The company has a market cap of $6.15 billion, a PE ratio of 21.52, a price-to-earnings-growth ratio of 0.60 and a beta of 1.42. The company has a quick ratio of 0.53, a current ratio of 0.56 and a debt-to-equity ratio of 3.32.

About Air Canada

Air Canada is the largest airline in Canada and one of the leading carriers in North America. Founded in 1937 as Trans-Canada Air Lines and rebranded as Air Canada in 1965, the company operates scheduled passenger and cargo services on six continents. The airline maintains membership in the Star Alliance network, offering seamless connections and coordinated loyalty benefits to travelers worldwide.

Through its mainline operations and subsidiaries—including Air Canada Rouge, Air Canada Cargo and Air Canada Vacations—the company provides a broad range of services.