Is Air Canada Set to Take Flight in 2023?

Air Canada (TSX:AC) is a Montreal-based company that provides domestic, United States, transborder, and international airline services. This TSX stock put together a stunning run over the course of the 2010s. Air Canada rose from below the $1 mark in early 2009 to over the $50 mark by January 2020. Unfortunately, the COVID-19 pandemic brought that amazing run to a halt.

The airline industry took a massive hit as operations ground to a stop in the face of the greatest global health crisis in a generation. Experts and analysts estimated that it would take several years for the industry to recover. The International Air Transport Association (IATA) recently projected that the airline industry would post a “small” net profit of $4.7 billion in 2023. That return to profitability is great news for Air Canada and its peers. Investors should take notice.

Shares of Air Canada have increased 1.1% year-over-year as of close on January 23. The stock has jumped 15% in the New Year. Investors can expect to see its final batch of fiscal 2022 earnings in the second half of February 2023. In Q3 2022, the company saw operating revenues more than double from the prior year to $5.32 billion. Meanwhile, it posted EBITDA of $1.05 billion compared to negative EBITDA of $67 million in the third quarter of fiscal 2021.

Air Canada is trading in favourable value territory compared to its industry peers. Meanwhile, a broader bounce back for the industry means the company is well-positioned to deliver strong earnings growth in the quarters ahead. Now is a great time to snatch up Air Canada stock.