Air Canada Stock Price Prediction 2025
- Current Air Canada Stock Price: 17.67 CAD
- Air Canada Stock Price Prediction for 2025: Can Hit More Than $35 Before Mid of 2025
In This Article, we will discuss the ins and outs of Air Canada Stock Prediction 2025. How and Why?
Air Canada’s recent financial results have sparked hopes for a recovery, but the airline industry’s future remains uncertain due to the ongoing pandemic. Despite Warren Buffett’s exit from airline stocks in 2020, Air Canada’s latest earnings suggest a potential return to profitability by 2025. However, two possible scenarios exist: continued recovery or another lockdown.
Scenario 1: Continued Recovery
Air Canada’s passenger revenue surged 223% in the third quarter due to pent-up demand, and the airline expects business travel to rebound in 2022. If this trend continues, Air Canada might not need bailout money, and shareholders could see the stock reach $40.
Scenario 2: Another Lockdown
The pandemic’s unpredictability and news of new mutations and lockdowns in China pose a risk. If another lockdown occurs, Air Canada’s liquidity would sustain it for a year, but the stock could drop to $18 or $15.
The probability of both scenarios is equal, and the stock’s future depends on the pandemic’s progression. Holders of AC stock should keep holding, but new buyers should wait for a better price ($24 or $23). If the stock falls below $20, sell. Monitor pandemic news and reassess in June 2022.
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Air Canada is a leading provider of air transportation services, offering a range of services including full-service flights, scheduled passenger and cargo services, to over 200 airports across six continents.
The company operates through five geographical segments: Canada, U.S. Transborder, Atlantic, Pacific, and Other. With a rich history dating back to its founding on April 11, 1936, Air Canada is headquartered in Saint-Laurent, Canada, and continues to be a major player in the global aviation industry.