- Air Canada maintains its forecast for 2024, expecting adjusted EBITDA of approximately C$3.5 billion, aligning closely with estimates of C$3.49 billion.
- The company anticipates a 5% increase in available seat miles and a 2% rise in adjusted CASM (Cost per Available Seat Mile) for the year.
- For 2025, Air Canada projects adjusted EBITDA to range between C$3.4 billion and C$3.8 billion, with an estimated midpoint of C$3.63 billion.
- Available seat miles for 2025 are expected to grow by 3% to 5%.
- By 2028, the company aims to achieve approximately C$30 billion in operating revenues.
- Air Canada targets an adjusted EBITDA margin of at least 17% and a free cash flow margin of roughly 5% in 2028.
- For 2030, aspirations include surpassing C$30 billion in operating revenues, an adjusted EBITDA margin between 18% and 20%, and maintaining a 5% free cash flow margin.
- Strategic plans focus on expanding the network, enhancing the customer experience, improving financial performance, and continuous investment in the business.
- Market sentiment about Air Canada is largely positive, with 14 analysts recommending a buy, 2 suggesting hold, and 1 advising to sell.
A look at Air Canada Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
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
Based on the Smartkarma Smart Scores, Air Canada‘s long-term outlook appears promising. With a Growth score of 4 and a Momentum score of 5, the company seems to be on a positive trajectory for expansion and market performance. Having a Value score of 3 indicates that the company is reasonably priced in the market, which may attract investors looking for solid opportunities. However, the lower scores in Dividend (1) and Resilience (2) suggest that Air Canada may not be as strong in these areas compared to its growth and momentum.
Air Canada, a provider of domestic and international carrier services, operates scheduled and charter air transportation for both passengers and cargo. The company’s services extend across a wide range of regions including Canada, the United States, Europe, Asia, the Middle East, and the Caribbean. Despite facing challenges in dividend payouts and resilience, the company’s strong growth and momentum scores indicate a potentially bright future ahead in the competitive airline industry.
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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