Are you interested in buying Air Transat shares and want to bet on a potential takeover of this airline?
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Get up-to-date and precise information on Air Transat stock with its current price, dividend yield, analysis and our opinion.
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Want to buy shares in Air Transat: Our key take-aways
Stock Exchange: TSX
- Stock index: S&P/TSX 60
- Dividend 2021: $0
- Dividend forecast for 2022: €0
- Performance over 1 year: +3.41
Should I buy Air Transat stock?
Air Transat is not a stock to choose if you are looking for a yield stock, but it can be an interesting growth stock.
Although the airline does not pay dividends to its shareholders, analysts expect its share price to rise in the medium-term, which could mean a capital gain for you.
Find out our key information about this stock, its recent performance and the analyses of industry experts as to the possible evolution of its price. We'll also tell you how to bet on this stock's upside or downside.
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How can I buy shares in Air Transat ?
To buy Air Transat on the stock market:
- Find an online broker offering stock investments.
- Open your trading account by filling out a simple form.
- Deposit funds into your account.
- Search for the stock
- Place a buy order to add Air Transat to your stock portfolio.
How much are Air Transat shares?
See price chart below to follow Air Transat stock price in real time.
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Why Air Transat shares could go up:
The economic analysis of Air Transat shows few strong points at present, but we can nevertheless retain these elements in favour of a rise in the share price:
- Attractive revenue: after having suffered greatly from the Covid crisis, like all airlines, the group returned to profit in 2021 with a free flow of $433 million, of which $170 million is available.
- A cost reduction strategy: the group is also pursuing a strategy to reduce its cost structure by reducing its fleet and refocusing its activities around air transport, which should enable it to stabilize its finances.
- Strategic partnerships: Air Transat regularly enters into strategic partnerships with other companies to boost its growth and sales.
- A recovery in air transport activity: Finally, the company is of course currently benefiting from a recovery in air transport activity after the end of travel restrictions during the Covid-19 pandemic.
Why Air Transat shares could go down:
Still within the framework of the macro and microeconomic analysis of Air Transat, we note various weak points and signals in favour of a decline in this stock, including
- A still high level of debt: in spite of the measures implemented to turn around its finances, the Air Transat group remains highly indebted.
- Risk of dilution of shareholders' equity: because of the debt we just mentioned, Air Transat risks diluting its shareholders' equity.
- Results below expectations: the results for fiscal year 2021 are certainly encouraging in terms of revenue, but remain well below consensus expectations.
- Losses are still significant: the group recorded losses of $58 million for fiscal year 2021, well above the general consensus of $38 million.
Can I buy Air Transat stock online?
Yes! You can buy Air Transat 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.
How can I sell my Air Transat shares?
Selling Air Transat stock is of course possible, but you must first have the stock in your portfolio in order to place a sell order with your broker and through your usual savings vehicle.
If you want to short this stock, you will have to go through a margin account.
You can also choose to use derivatives such as CFDs or options to speculate on the decline in the price of that stock.
What investment vehicles in Canada can hold Air Transat stock?
Air Transat 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.
You can buy Air Transat shares through a stockbroker with a buy order on the desired quantity of securities.
It is also possible to invest in a basket of securities that includes Air Transat shares by investing in an ETF or a mutual fund.
Air Transat share price history over 10 years:
Air Transat dividends and payment dates
The Air Transat group has not paid a dividend to its shareholders since 2009.
While it is not clear whether the company will decide to pay its shareholders again in the coming years, it seems unlikely given the company's current financial situation.
Indeed, profits are still too insufficient to be redistributed by the company, which is rather looking for savings to reduce its debt.
What is the dividend yield for Air Transat over the last 10 years?
The yield on Air Transat shares is obtained by dividing the annual dividend by the annual average price.
A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.
Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year
The 10-year average return = Sum of annual returns ÷ 10
What analysts are saying about Air Transat stock:
A critical analysis of Air Transat stock:
The long-term fundamental analysis of Air Transat shares remains interesting with several positive signals but also some negative ones:
- A growth stock: estimates by some rating agencies suggest that Air Transat is a growth stock to watch.
- Low valuation: Air Transat's stock shows a low valuation level as the enterprise value is estimated at 0.83 times its revenue.
- Upwardly Revised Revenue Expectations: Several analysts have recently revised upwardly their revenue expectations for this stock as well as revenue and earnings per share estimates.
- Low margins: Taking into account the depreciation and amortization it has received and as a percentage of revenue, Air Transat's margins appear to be very low. Its level of profitability is also low.
- Profitability expected to decline: analysts have recently revised downwards their forecasts for the profitability of this share. The average price target is indeed close to the current price, which leaves little growth potential for the stock.
- Inconsistent estimates: analysts' estimates of the group's activity differ significantly, which reflects a lack of visibility.
- Disappointing historical publications: the group's historical financial publications have often disappointed by being below expectations.
A technical analysis of Air Transat stock:
Regarding the long-term technical analysis of Air Transat shares, the signals obtained are currently giving a sell signal with:
- The RSI which is currently at 44.93 is giving a neutral signal for this stock.
- The MACD indicator is negative at -1.07, which is a strong buy signal.
- The stochastic indicators are evolving in scattered trangles and are globally showing a lack of clear signal.
- The simple and exponential moving averages in the short-term are the only ones to send a buy signal and the MMs over the other periods all send a sell signal.
- Finally, the technical supports for this stock are currently at 2.55 and 1.56 and the next strategic resistances are located at 6.71 and 9.38.
Who is Air Transat?
Air Transat Group Inc. is a Canadian company specialized in air transport.
More precisely, this company is specialized in the organization, sale and distribution of travel. Thus, the company's activities are essentially oriented towards a leisure airline that offers destinations internationally and in Canada. In parallel and thanks to a vertical integration of its activities, the group also offers vacation package services, distribution through a network of travel agencies and services to travel destinations.
Transat AT is a travel and vacation provider with its airline Air Transat, which offers an air transportation program integrating flight operations, operational control, aircraft maintenance, cabin operations, ground handling, cargo operations and security.
The group currently employs 1,457 people.
Who are Air Transat’s competitors?
Air Transat is one of the two major airlines in Canada, but also faces competition from other major players including:
- Air Canada: this is the largest national airline in Canada with domestic and international flights to all continents and the 15th largest airline in the world. It is also a founding member of the Star Alliance and has attempted to acquire Air Transat in 2019.
- WestJet Airlines: This Canadian low-cost airline offers scheduled flights to 86 destinations in Canada, the United States, Mexico and the Caribbean. It is the second largest airline in Canada and the ninth largest in North America in terms of passenger numbers.
- PAL Airlines: This Canadian airline is based in Newfoundland and is a three-time winner of the Most Punctual Service Award.
- Air Inuit: This airline was established in 1978 and serves 14 communities in Canada. It is collectively owned by the Inuit of Nunavik through its participation in Makivik Corporation.
- Air North Charter and Training: This Canadian airline offers scheduled passenger and cargo flights within the Yukon and to the Northwest Territories, British Columbia, Alberta and Ontario. It also operates charter flights to Canada and Alaska.
- Bradley Air Services Limited: This airline operates as First Air and is based in Kanata, Ontario. It offers scheduled regional flights as well as charter flights to the northern communities of Quebec, Ontario, Manitoba, Alberta, Yulon, Nunavut and the Northwest Territories.
Who are Air Transat’s partners?
While Air Transat has many adversaries in Canada, it also regularly enters into strategic partnerships with other companies. Recent partners include
- SAF+: the group recently signed a partnership with SAF+ to commit to the production of electro-fuel produced by this company in its first plant and for a period of 15 years.
- TravelCar: the two companies have also joined forces to offer travelers free parking at airports and the possibility of renting out their vehicles during their absence.
- SNCF: another partnership has been set up in France by Air Transat with SNCF so that its customers bound for Paris can reach 19 other French cities and Brussels thanks to a combined plane+train offer.
- WestJet: another strategic partnership has been signed with WestJet to set up a complementary network to its own.
- Pascan Aviation: Finally, a partnership has been signed with Pascan Aviation which has entered into a partnership agreement with Air Transat to facilitate connections to international destinations from regional airports.