Air Canada shares surge to 10-year high after bullish out­look

The Guardian (Charlottetown) - - BUSINESS -

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.

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