Air Canada stock slides to one-year low despite frothy summer profits
![Air Canada Air Canada's share price hit a one-year low on Wednesday as the airline deals with the impact of higher fuel costs, competition and interest rates. Air Canada planes sit on the tarmac at Pearson International Airport in Toronto on Wednesday, April 28, 2021. THE CANADIAN PRESS/Nathan Denette](/content/dam/ctvnews/en/images/2023/10/18/air-canada-1-6606814-1697649753587.jpg)
Air Canada's share price hit a one-year low on Wednesday as the airline navigates higher fuel costs, competition and interest rates.
The company's stock slipped nearly three percentage points to $17.29 by midday, marking its lowest price since mid-October last year and a one-third drop from its recent peak in July — part of a pattern seen across the North American airline sector.
On Monday, Raymond James analyst Savanthi Syth lowered her earnings forecast for the Montreal-based company due to the run-up in jet fuel prices over the past three months.
She noted steeper competition with Porter Airlines, Flair Airlines and Lynx Air on domestic, cross-border and sun destination routes, but pointed to Air Canada's loyalty program and fuel-efficient planes as an advantage.
In an interview, ATB Capital Markets analyst Chris Murray said worries also persist over consumers' willingness to keep spending on travel amid higher interest rates and inflation.
Nonetheless, he says Air Canada looks well-placed in the medium term after the airline roared back to profitability in the spring and early summer, when revenues hit a second-quarter record that topped $5.4 billion.
This report by The Canadian Press was first published Oct. 18, 2023.
CTVNews.ca Top Stories
![](https://www.ctvnews.ca/polopoly_fs/1.7029443.1725744633!/httpImage/image.png_gen/derivatives/landscape_800/image.png)
Police release video of Toronto plaza shooting that killed university student
A university student from Brampton was killed when two shooters fired indiscriminately into a crowded plaza in Toronto last month in what police say was a 'cowardly act.'
'Hopeless and helpless': Regina mother seeks help to treat rare spinal disease
Mary Grace Rico is seeking help in getting treatment for a rare spinal condition.
The iPhone is getting a 'glow' up. What to expect from Apple's Monday event
Apple excited fans with its vision for its 'Apple Intelligence' artificial intelligence system earlier this year. Now, it's time for the company to prove it really works.
No more porta-potties at B.C. construction sites starting Oct. 1
What some B.C. construction workers describe as the worst aspect of their jobs will be coming to an end next month, the province announced.
BREAKING Numerous people shot in Kentucky near Interstate 75, officials say
Several people have been shot near Interstate 75 in Laurel County, Kentucky, according to the Laurel County Sheriff’s office.
'Extremely vigorous' wildfire activity in central B.C. prompts crews to back off for safety
The wildfire fight in central B.C. intensified Friday, according to officials.
Trump campaigns in Wisconsin just days ahead of debate with Harris
With just days to go before his first — and likely only — debate against U.S. Vice-President Kamala Harris, former U.S. president Donald Trump leaned into his familiar grievances about everything from his indictments to the border as he campaigned in one of the most deeply Republican swaths of battleground Wisconsin.
They were due to leave for their dream cruise in May. Three months on they’re still stuck at the departure port
It was the years-long cruise that was supposed to set sail, but saw its departure postponed… postponed… and postponed again.