Air Canada shares: price, dividends and performance

James Rodriguez James Rodriguez  updated on 2022-06-15

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Air Canada shares are not a dividend stock. However, they are popular with investors who want to put their money into growth stocks with interesting long-term performance or traders who use derivatives to speculate on its short-term fluctuations.

How much can you make with Air Canada stock?

Get up-to-date and precise information on Air Canada stock with its current price, dividend yield, analysis and our opinion.

This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.

Want to buy shares in Air Canada: Our key take-aways

Stock Exchange: Toronto Stock Exchange

  • Stock exchange: S&P/TSX
  • Dividend 2021: $0
  • Dividend forecast 2022: $0
  • 1 year performance: +1.16%.

Should I buy Air Canada stock?

While Air Canada's share price has recently fallen, analysts indicate that the stock is undervalued. Therefore, it may be worth buying these shares in 2022 at a low price to take advantage of the bullish recovery announced by the group.

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How can I buy shares in Air Canada ?  

To buy Air Canada on the stock market:

  1. Find an online broker offering stock investments.
  2. Open your trading account by filling out a simple form.
  3. Deposit funds into your account.
  4. Search for the stock
  5. Place a buy order to add Air Canada to your stock portfolio.

To invest in Air Canada, you can go through a traditional investment firm, an online brokerage or speak with a financial advisor.

How much are Air Canada shares?

See price chart below to follow Air Canada stock price in real time.

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Why Air Canada shares could go up:

The current elements favouring an increase in Air Canada's share price include:

  • A leading position: Air Canada has a leading position in the Canadian domestic market and competition is still very weak.
  • A profitable international business: The group's international activities are profitable, particularly in the US market.
  • Low share price: The current price of Air Canada shares is also interesting. Indeed, the stock is currently trading at historic lows and far from its record highs, which suggests an interesting capital gain.
  • Positive forecasts: although scattered, analysts' forecasts for the evolution of earnings as well as the evolution of the share price remain largely optimistic and positive.
  • Growth opportunities: Air Canada still has opportunities to grow. It can consider acquisitions and new operations in other international destinations in order to increase its revenue sources.
  • Strong Performance Estimate: Over the next 12 months, according to the current consensus of analysts, Air Canada's share price could rise by more than 28.56% to $29.47.

Why Air Canada shares could go down:

Air Canada shares are not all positive. They also suffer from a number of issues

  • An aging fleet: Air Canada's fleet of planes has been in service for a long time. It will soon need to be replaced, which will generate significant expenses.
  • A significant debt: the level of debt of the airline, especially following the Covid-19 pandemic which has severely penalized it, may slow down its growth and profitability in the long-term.
  • Strong competition: internationally, the group faces very tough competition. The company is not really well positioned on this market.

Can I buy Air Canada stock online?

Yes! You can buy Air Canada shares online. For many buys this is the best way to do it. Here's why:

  • The commissions are lower
  • You can choose your own investments
  • You benefit from analysis and decision support tools
  • You can invest in stocks directly or through derivatives like ETFs.

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How can I sell my Air Canada shares? 

If you have Air Canada shares in your stock portfolio, you can sell them by simply placing a sell order in the market.
But if you expect the price of that stock to fall and want to sell it short, you can't do so from your standard investment vehicle. Instead, you'll need to use a derivative or option to take a short position in Air Canada stock.

What investment vehicles in Canada can hold Air Canada stock? 

Air Canada shares can be placed in several different savings vehicles including" 

  • RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
  • TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
  • Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
  • Cash accounts: This account allows you to trade stocks on North American markets only. 

If you don't want to buy just Air Canada shares, but invest in a basket of stocks, you can use ETFs and Preferred Stock ETFs, which are exchange-traded funds made up of several stocks. These funds are traded on the stock market in the same manner as stocks.

Air Canada share price history over 10 years:

Time periodGrowthHighLow
1 week2.17%25.0722.79
1 month6.79%25.9822.79
3 months-3.33%25.9819.31
6 months-11.32%26.8019.31
1 year1.16%31.0019.31
3 years-16.79%52.719.26
5 years59.17%52.719.26
Air Canada 10-year performance

Air Canada dividends and payment dates

Air Canada does not currently pay dividends to its shareholders.
The group has implemented a policy of reinvesting its profits in order to finance its growth and the development of its activities, but also to repay its debt.
The conditions allowing Air Canada to remunerate its shareholders are not fulfilled and depend on the group's financial situation and its operating results, its capital requirements and the restrictive clauses of Air Canada's contracts.
Furthermore, during the Covid-19 crisis, the airline was one of the largest beneficiaries of the SSUC in Canada with a subsidy of $295 million received. Therefore, the company cannot pay a dividend at this time.

Finally, there are no plans for the group to pay dividends its shareholders in the coming years.

What analysts are saying about Air Canada stock:

A critical analysis of Air Canada stock:

Fundamental analysis of Air Canada stock is mixed, with some strengths and weaknesses.

  • Revenue growth: Revenue expectations for the next few years are bullish as is the outlook for earnings.
  • Revenue estimates: Analysts also expect the group's revenue to rise and have revised their estimates upward in terms of business development.
  • Price target: Analysts who follow this stock indicate an average price target of over $22.57, which represents an interesting upside potential.
  • Profitability: The company's profitability shows fragile margins that may penalize it in the future.
  • Financial situation: The company's situation is rather negative with a high net debt and a low EBITDA.
  • Consensus: the current consensus for Air Canada shares is scattered with estimates varying widely from one analyst to another

A technical analysis of Air Canada stock:

The medium-term technical analysis of Air Canada shares appears to be returning a neutral signal with sell signals from the oscillators and a buy signal from the moving averages.

  • The RSI is neutral in the medium to long-term with a level at 55.71.
  • The MA5, MA50, MA100 and MA200 simple and exponential moving averages are sending a buy signal while the MA10 and MA20 moving averages are sending a sell signal.
  • The MACD is currently at 0.110, which is also sending a buy signal.
  • Finally, the next technical supports are located at 22.36 and 22.27 and the next resistances are located at 22.51 and 22.57

Who is Air Canada?

Air Canada Group is a Canadian company specialized in air transport.

The group offers passenger services in the Canadian market, serving 50 cities, as well as in the Canada-US market with 34 US destinations and in the international market with 22 destinations from the hubs of Toronto, Vancouver, Montreal and Calgary.

The company also has several wholly owned subsidiaries such as Touram Limited Partnership, Air Canada Rouge LP and Aeroplan Inc.

Who are Air Canada’s competitors?

Air Canada is currently the market leader in passenger transportation in Canada, but faces some major competitors internationally, particularly in the U.S. market. Here are its main current competitors:

  • Air Transat: this company is the only Canadian competitor of Air Canada, based in Montreal that offers international and domestic flights. This company belongs to the group Transat AT Inc which is a specialist in the organization of travel. The company serves about 60 destinations in over 30 countries.
  • American Airlines: this American airline offers domestic and international flights from various hubs located in the U.S. It is now the largest airline in the world and serves about 50 countries with over 350 destinations.
  • Delta Airlines: still in the United States, Delta Airlines is an airline that offers scheduled flights in the country and internationally. Its headquarters are in Atlanta. The company has become one of the largest airlines in the world following its merger in 2008 with Northwest Airlines. It currently serves more than 375 destinations in 66 countries around the world.
  • United Airlines: Part of United Continental Holdings, this airline is also one of the largest in the world. It is also one of the founding members of the Star Alliance of which Air Canada is a member. United Airlines serves over 1,000 destinations in 170 countries.

Who are Air Canada’s partners?

Air Canada also has strategic allies and regularly enters into partnerships with other companies to enhance its growth and profitability. Recent key partners include:

  • Mastercard: In 2020, the group signed a strategic partnership as part of its alliance with Chase, with the Mastercard Group. Mastercard will become the single payment network for the Canadian carrier's new U.S. Aeroplan credit card offering with Chase.
  • LCBO: Recently, Air Canada Aeroplan also entered into a strategic partnership with LCBO, awarding one Aeroplan point for every $4 spent at LCBO locations upon presentation of the card. These points can then be redeemed for travel, hotel stays, car rentals, merchandise and gift cards.
  • Air Mauritius: Air Canada Aeroplan has also partnered with Air Mauritius to offer a referral bonus to select members.
  • CAE: Finally, Air Canada has a 5-year strategic alliance with CAE for aircraft maintenance training. CAE has become the Transport Canada approved training organization for the maintenance and engineering of the company's aircraft.