Air Canada shares surge to 10-year high after bullish outlook
MONTREAL — Air Canada shares were at their highest in more than 10 years on Thursday after the country’s largest airline said analyst forecasts had significantly underestimated one of its earnings benchmarks. Shares in the Montreal-based airline peaked at $19.06 in morning trading on the Toronto Stock Exchange rose. In later trading, they were up 7.38 per cent or $1.28 at $18.62.
The last time Air Canada shares (TSX:AC) were at these levels was in February 2007.
The shares surged after Air Canada said its EBITDAR (earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent) will be better than $475 million average forecast by analysts for the three months ended June 30.
In last year’s second quarter, Air Canada posted a record $605 million in EBITDAR and $186 million of net income, which includes many items required under general accounting.