The Globe and Mail reports in its Monday edition that Air Canada releases its first quarter financials Thursday and the Street is divided about whether the ho-hum stock can show some upward trajectory. Guest columnist Amber Kanwar writes that half of the analysts who cover the stock say buy and 50 per cent say hold. Higher jet-fuel prices are a wild card. On one hand, they are driving up costs. On the other hand, Air Canada has been passing those increases on to consumers. In fact, March airline prices increased year-over-year for the first time in two years, according to data from Statistics Canada. "Higher airfares typically lead to some demand destruction," wrote National Bank analyst Cameron Doerksen, who is in the neutral camp. The stock has been perilously range-bound, so this quarter could decide the next move.
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