|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||12.25 - 12.82|
|52 Week Range||6.49 - 40.31|
|Beta (5Y Monthly)||2.06|
|PE Ratio (TTM)||11.08|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Canadian Prime Minister Justin Trudeau on Friday expressed disappointment at Air Canada's <AC.TO> decision to suspend some flights and said he hoped the carrier would restore services as the economy recovered. The airline, Canada's largest, said on Tuesday it would halt flights on 30 domestic routes hit by persistent weak travel demand due to the COVID-19 pandemic. Air Canada said on May 15 it would cut its workforce by up to 60%.
Canada's largest carrier forecast third-quarter capacity would decline at least 75% from a year ago and warned that travel restrictions and border closures triggered by the pandemic were dimming prospects for a near- to mid-term recovery. The carrier's decision "will be very disappointing to the residents and communities affected by these service cuts," Canadian Minister of Transport Marc Garneau said in a statement. Air Canada said it has reduced its workforce by about 20,000 employees, which represents more than 50% of its staff, and has permanently removed 79 aircraft from its fleet.
Air Canada Discontinues Service on 30 Domestic Regional Routes and Closes Eight Stations in Canada
Attention editors: Videos explaining measures that are part of the multi-layered Air Canada CleanCare+ bio-safety program are available online here. MONTREAL , June 29, 2020 /CNW Telbec/ - Air Canada today announced it is advancing its industry-leading bio-safety measures by offering flexible rebooking options to Economy Class customers on flights that are close to capacity, introducing additional touchless processes at airports, and enhancing inflight service and amenities. As of July 1 , we will be transparent about flights booked close to capacity in Economy Class and will provide rebooking options for customers booked on such flights.
(Bloomberg Opinion) -- What could possibly attract Bain Capital about an airline that hardly ever generates cash? Loyalty is almost certain to be the answer.Administrators for Virgin Australia Holdings Ltd. at Deloitte agreed to sell the second-ranked Australian airline to the private equity firm after it collapsed in April owing A$6.8 billion ($4.7 billion). In a sign of what a difficult path lies ahead of Bain, interest from 20 parties was ultimately whittled down to just two final bidders. Airlines, with their vast capital expenditures, weak competitive positions, and already-heavy debt loads, aren’t the most obvious places for private equity to invest. Most firms look for businesses that can consistently throw off cash before returning to market at an enhanced valuation a few years later.Virgin hardly fits that bill: The company has posted positive annual free cash flow just three times in two decades. It’s hard to see how a few years of business in the time of coronavirus is going to enhance its market value much. That’s particularly the case given that Qantas Airways Ltd., which spent much of the past decade demonstrating the power of its superior market share, has just strengthened its balance sheet through a capital raising.There is, however, one part of Virgin that’s perennially attractive to private equity — its Velocity frequent-flier program. It’s not unusual for airlines to be essentially loyalty programs with wings — Qantas’s is often the most profitable part of the business, and Air Canada’s spun-off program Aimia Inc. mostly traded at a higher multiple than its former parent until it was bought back a few years ago. Velocity has already been a winner for private equity. Affinity Equity Partners bought a 35% stake in the program in 2014 and sold it back last year at a A$2 billion valuation. That’s more than twice what it originally paid, and far more than the A$1.2 billion or so that the entire airline was worth before coronavirus struck, not to mention the zero value now put on Virgin Australia’s equity. The biggest challenge for Bain will be what to do with the main bit of the business — but that’s not an impossible task. While details haven’t been released of what a post-insolvency Virgin will look like, you’d expect the administration process to bring an end to many of the asset impairments and interest expenses that have weighed so heavily on earnings in recent years, giving an opportunity to spruce it up for selling back to the market. Australia’s stock investors are famous for buying dog-eared companies from private equity and repenting at their leisure.Bain has promised to “invest in and see closer integration” of the loyalty program and the core flying business, though it’s not clear that this amounts to a promise never to separate the two. Don’t be surprised if 18 months from now the next big IPO in Sydney is a seemingly-rejuvenated Virgin Australia, shorn of its lucrative loyalty program. Just don’t make the mistake of buying into it.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Canada's largest carrier said it had raised C$5.5 billion of liquidity since the start of the COVID-19 pandemic in the first quarter of 2020. "The fact Air Canada was able to add C$1.23 billion to its liquidity ... without utilizing any of its previously disclosed unencumbered assets leaves the airline in an excellent position to access additional funds should the need arise," Air Canada Treasurer Pierre Houle said in a statement.
MONTREAL , June 22, 2020 /CNW Telbec/ - Air Canada today announced that it recently closed two additional financing transactions for net proceeds of $1.23 billion . Since the start of the COVID-19 pandemic in the first quarter of 2020, Air Canada has raised $5.5 billion of liquidity. On June 22, 2020 , Air Canada completed a private offering of $840 million aggregate principal amount of 9.00% Second Lien Secured Notes due 2024 (the "2024 Notes"), which were sold at 98% of par.
Canadian Prime Minister Justin Trudeau on Monday pushed back against pressure from airlines to reopen the nation's borders, saying moving too quickly could spark a second wave of the coronavirus. "I understand there are a lot of tourism firms and airlines who would like us to be able to once again to welcome tourists," Trudeau told a daily briefing. A senior official with Air Canada - the country's largest airline - urged the government on Monday to quickly reopen borders and dilute quarantine requirements, citing what other nations were doing.
EU antitrust regulators have suspended their investigation into Air Canada's <AC.TO> bid for Canadian tour operator and carrier Transat AT Inc <TRZ.TO> while waiting for the companies to provide data sought by the enforcers. The European Commission, which opened a four-month investigation last month on concerns that the deal may result in higher prices and less choice for flights between Europe and Canada, halted its probe Thursday. "This procedure in merger investigations is activated if the parties fail to provide, in a timely fashion, an important piece of information that the Commission has requested from them," the EU executive said.
(Bloomberg) -- The heads of 27 Canadian companies, including the CEOs of two large banks and Brookfield Asset Management Inc., are urging Prime Minister Justin Trudeau and provincial premiers to ease air travel restrictions.Most international flights have been canceled and the U.S.-Canada border has been shut to most travelers since March 21 -- a policy that was extended to July 21. Last week, Air Canada Chief Executive Officer Calin Rovinescu called the restrictions “disproportionate” as the coronavirus outbreak improves in most parts of Canada.Now Rovinescu has the backing of the chief executive officers of nine companies in the S&P/TSX 60, who are among the 27 signatories to a letter published in Canada’s Globe and Mail newspaper on Thursday.“We are now entering a new phase, one in which we must find a responsible way to co-exist with Covid-19 until there is a vaccine. This includes prudently and thoughtfully opening aviation and lifting restrictions to safely resume travel throughout all provinces of Canada, as well as from select countries,” the executives wrote.Signatories include top executives from:Banks: Royal Bank of Canada and Bank of Nova ScotiaCommunications: BCE, Telus and Rogers CommunicationsEnergy: Enbridge, TransAlta and HuskyAviation: Air Canada, WestJet and PorterTransportation: Canadian National RailwayManufacturing: Magna International, LinamarAsset Management: Brookfield, Fairfax FinancialCanada has seen a reduction of new cases and deaths from Covid-19 in recent weeks as it finally quells an outbreak in its two largest cities that has claimed thousands of lives. The country had nearly 100,000 virus cases and 8,254 deaths as of Wednesday evening.Policy makers in Canada have also been watching the rise in cases in several large U.S. states as they weigh a loosening of travel rules. Air travel between the U.S. and Canada has grown sharply in recent years, reaching 26.4 million passengers on scheduled flights in 2018, according to Statistics Canada data.Air travel is “critical for the entire Canadian economy,” the executives wrote. “In addition to the human tragedy resulting from the virus, the economic impact has also been unprecedented.”Air RecycledMike McNaney, CEO of the National Airlines Council of Canada, said the country should follow the move of other regions like the European Union, which has allowed travel between member states. The EU is also targeting inbound travel next month from other jurisdictions that have flattened the virus curve and are following new travel protocols, McNaney said.Travel between the U.S. and Canada should also be considered on a targeted basis, McNaney said on BNN Bloomberg TV.The airline industry has worked hard to make flying as safe and comfortable as possible, he added. Passengers will see masks, health questionnaires, and temperature checks at airports. “What they do not see is the incredible expansion in scope and frequency of cleaning and disinfecting of aircraft cabins as well as airports,” he added.Contrary to popular belief, the air in cabins is not stagnant but recycled every several minutes with a hospital-grade air filter that captures 99% of impurities, McNaney added.(Updates with comments from industry group CEO in last section.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
American Airlines plans to pledge the AAdvantage program as collateral for a new secured loan from the government. But the program probably isn't worth anything close to its appraised value.
Air Canada <AC.TO> is seeing improved domestic bookings, but expects international flights to only pick up if governments relax travel restrictions introduced to curb the spread of coronavirus, the airline's chief financial officer said on Tuesday. "I think you’re seeing across the industry improvements in bookings and certainly at Air Canada we're seeing that as well," CFO Michael Rousseau told a National Bank event for analysts and investors. "But that's focused primarily on domestic business, point to point within Canada."
MONTREAL , June 15, 2020 /CNW Telbec/ - Air Canada said today that due to social distancing requirements arising from COVID-19, it will hold its 2020 Annual Meeting of Shareholders virtually, online, on Thursday, June 25, 2020 . Shareholders will be able to vote on motions, of which there are currently four before the meeting, including: the election of directors who will serve until the end of the next annual shareholder meeting; the appointment of auditors; consideration and approval, in an advisory, non-binding capacity, of Air Canada's approach to executive compensation; and a motion to renew the existing shareholder rights plan. Full details are contained in the management proxy circular, a copy of which is available on SEDAR at www.sedar.com and on the company's website.
Rovinescu's remarks were in the context of a letter sent to Prime Minister Justin Trudeau from the Canadian travel and tourism industry, calling for a national plan to cut back pandemic travel restrictions, Air Canada said. Canada and the United States are set to extend a ban on non-essential travel to late July as both countries seek to control the spread of the new coronavirus, Reuters reported on Tuesday, citing three sources familiar with the matter. Airlines, including Air Canada, have been among the worst hit as coronavirus-led travel bans resulted in thousands of flight cancellations, forcing carriers to cut jobs and costs as revenue dried up.
(Bloomberg) -- Canadian stocks tumbled the most since March 27, slumping with global markets on concerns a second-wave of the coronavirus will stir up new economic challenges.The S&P/TSX Composite index fell 4.1% in the third day of losses, its longest losing streak since March 9. All sectors declined, with health care and energy especially weak. The market is still up 34% from this year’s low on March 23.“It’s been a pretty breathless and relentless rally so we wouldn’t be terribly surprised to see a pause or a bit of a pullback,” Brian Madden, portfolio manager at Goodreid Investment said on BNN Bloomberg. “But that’s not to be misunderstood that we’re going back to the depths of the March lows.”“If we’ve learned one thing amidst the pandemic, and policy makers’ response, it’s that they’ve adopted the ‘whatever it takes’ mantra and that ranges from unprecedented fiscal stimulus from the federal government,” Madden said.Crude futures plunged by the most since late April, falling 9.1%.Meanwhile, Air Canada’s Chief Executive Officer Calin Rovinescu said the Canadian government’s rules on travelers are now “disproportionate” as the Covid-19 pandemic eases in many regions. Shares of the airline fell 8.5% Thursday.CommoditiesWestern Canada Select crude oil traded at an $8.50 discount to West Texas IntermediateSpot gold fell 0.6% to $1,728.60 an ounceFX/BondsThe Canadian dollar dropped 1.6% to C$1.3620 per U.S. dollarThe 10-year government bond yield fell 4.8 basis points to 0.52%(Updates commentary and closing market prices.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Air Canada Deputy Chief Executive Officer & Chief Financial Officer Michael Rousseau will Participate in a Fireside Chat at the National Bank Financial 10th Annual Quebec Conference (virtual)
Airlines, including Air Canada, have been among the worst hit as coronavirus-led travel bans resulted in thousands of flight cancellations, forcing carriers to cut jobs and costs as revenue dried up. It will allow Air Canada to "better manage debt leverage and risk" as the market recovers, Chief Financial Officer Michael Rousseau said in a statement. Rousseau said last month Air Canada was seeing fewer cancellations and an improvement in demand for air travel as lockdowns eased.
Air Canada Announces Closing of Offering of Shares and Convertible Senior Notes, Raising Gross Proceeds of Nearly C$1.6B
MONTREAL , May 28, 2020 /CNW Telbec/ - Air Canada (AC.TO) (the "Company") today announced that it has priced both its previously announced underwritten marketed public offering of 30,800,000 Class A Variable Voting Shares and/or Class B Voting Shares of the Company ("Shares") at a price to the public of C$16.25 per Share (the "Share Offering"), for aggregate gross proceeds of C$500,500,000 and its concurrent marketed private placement of convertible senior unsecured notes due 2025 ("Convertible Notes") for aggregate gross proceeds of US$650,000 ,000 (the "Convertible Notes Offering" and together with the Share Offering, the "Offerings"). The Convertible Notes will bear interest semi-annually in arrears at a rate of 4.000% per annum and will mature on July 1, 2025 , unless earlier repurchased, redeemed or converted.
MONTREAL , May 26, 2020 /CNW Telbec/ - Air Canada (AC.TO) (the "Company") today announced that it has commenced a marketed public offering of Class A Variable Voting Shares and/or Class B Voting Shares of the Company ("Shares") for gross proceeds of approximately C$500 million (the "Share Offering") and a concurrent marketed private placement of convertible senior unsecured notes ("Convertible Notes") for gross proceeds of approximately US$400 million (the "Convertible Notes Offering" and together with the Share Offering, the "Offerings"). The Company intends to grant the underwriters an option to purchase up to an additional 15% of the Shares in the Share Offering, exercisable in whole or in part at any time until 30 days after closing of the Share Offering and up to an additional 15% of the Convertible Notes in the Convertible Notes Offering, exercisable in whole or in part at any time until 13 days after closing of the Convertible Notes Offering.
Air Canada’s (ACDVF) proposed bid for tour operator Transat is being challenged by European regulators amid concern that the deal may hamper air traffic competition between European countries and Canada, leading to higher prices for consumers.The European Commission opened an in-depth investigation to assess the proposed acquisition and will announce its decision on Sept. 30. Back in August, Air Canada shareholders approved the C$720 million acquisition of Transat, which operates Air Transat.In a statement, the Commission said it is concerned that the proposed transaction could significantly reduce competition on 33 origin and destination (O&D) citypairs between European Economic Area countries and Canada. These include 29 O&Ds where both companies offer direct services.“We will carefully assess whether the proposed transaction would negatively affect competition in these markets leading to higher prices, reduced quality or less choice for travellers flying over the Atlantic,” said Executive Vice-President Margrethe Vestager, responsible for European Union competition policy. "This is a challenging time, especially in markets severely impacted by the coronavirus outbreak, but a return to normal and healthy market conditions must be based on markets that remain competitive.”The Commission added that it will investigate the extent to which the coronavirus crisis would impact Air Canada, Transat and their competitors' operations and hence the competitive landscape in the mid- and long-term.In response to the probe, Transat said that it had notified Air Canada that it plans to postpone the outside date set for the transaction by one month to July 27. As a result, the company now expects the deal to close in the fourth quarter of this year.Shares in Air Canada dropped 2% to $11.93 in U.S. trading on Friday. The stock is down 67% year-to-date.Wall Street analysts have a cautiously optimistic outlook on the stock. The Moderate Buy consensus is based on 4 Buy ratings and 4 Hold ratings. In light of the recent plunge in the shares, the $18.88 average price target reflects 58% upside potential in the coming 12 months.Related News: Latam Airlines Files For Chapter 11 Bankruptcy Protection In U.S. Ryanair Cuts Traffic Target By Almost 50% For Coming Year, Seeks To Reduce Boeing Plane Deliveries Boeing Gets No Orders in April, Customers Cancel 737 MAX Jets More recent articles from Smarter Analyst: * Free Version of WWE Network Now Available for Fans * Bristol Myers Reveals Positive Results For Ulcerative Colitis Pivotal Trial * Pfizer Embarks On $500 Million Investment Plan For Biotech Businesses * MongoDB Earnings Preview: Analysts Looking For Beat, Raise Quarter
Air Canada's <AC.TO> bid for Canadian tour operator Transat AT Inc <TRZ.TO> may result in higher prices and less choice for flights between Europe and Canada, EU antitrust regulators said on Monday as they opened a full-scale investigation into the deal. Shares of Transat closed down about 7% at C$7 on Monday. Montreal-based Air Canada is hoping Transat will boost its leisure travel business and help it better compete with rival WestJet Airlines <WJA.TO>.