Clear Skies Ahead? RBC Sees Air Canada Climbing to $25
RBC’s Optimistic Upgrade: Air Canada’s Strategic Maneuvers Amid Market Uncertainty

RBC Capital Markets has made a bold move, upgrading Air Canada to “Sector Outperform” and raising its price target from $16 to $25. The decision, announced late Sunday, underscores the bank’s confidence in Air Canada’s ability to navigate turbulent market conditions effectively. This vote of confidence aligns with the broader market sentiment that the airline is currently undervalued and poised for a rebound.
The decision comes on the heels of Air Canada’s first-quarter results, which revealed that the airline successfully managed to mitigate the impact of declining trans-border demand. According to RBC analyst James McGarragle, the company’s strong operating performance and cost control efforts were key factors in the upgrade. Despite a notable drop in U.S.-bound travel, Air Canada leveraged its extensive network and diversified revenue streams to offset potential losses.
McGarragle’s analysis points to the airline’s strategic redeployment of capacity as a pivotal move that mitigated the impact of weakened demand in the U.S. leisure market. Instead of relying solely on American destinations, Air Canada strategically shifted focus to more profitable markets, demonstrating an agility that many airlines have struggled to achieve.
