FY2026 Earnings Forecast for Air Canada Issued By Scotiabank

Key Points

• Scotiabank sharply cut its FY2026 Air Canada EPS forecast to C$0.20 from C$0.80, well below the stated analyst consensus of C$2.58; it forecast C$0.48 EPS for FY2027.
• Scotiabank maintained a “Sector Outperform” rating. Other firms also lowered price targets, while MarketBeat reported a “Moderate Buy” consensus rating and an average target of C$30.31.
• Air Canada reported quarterly EPS of C$0.75 and revenue of C$6.98 billion in its latest results.

Air Canada (TSE:AC - Free Report) - Analysts at Scotiabank lowered their FY2026 earnings estimates for shares of Air Canada in a report released on Monday, November 2nd. Scotiabank analyst K. Gupta now forecasts that the company will post earnings per share of $0.20 for the year, down from their prior forecast of $0.80. Scotiabank currently has a "Sector Outperform" rating and a $33.00 price objective on the stock. The consensus estimate for Air Canada's current full-year earnings is $2.58 per share. Scotiabank also issued estimates for Air Canada's FY2027 earnings at $0.48 EPS.

Air Canada (TSE:AC - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The company reported C$0.75 EPS for the quarter. The business had revenue of C$6.98 billion during the quarter. Air Canada had a return on equity of 12.10% and a net margin of 1.23%.

A number of other research firms also recently commented on AC. BMO Capital Markets cut their price objective on Air Canada from C$35.00 to C$33.00 and set an "outperform" rating on the stock in a report on Friday, October 30th. National Bank Financial decreased their target price on Air Canada from C$37.00 to C$33.00 and set an "outperform" rating for the company in a report on Friday, October 30th. Royal Bank Of Canada dropped their target price on shares of Air Canada from C$37.00 to C$28.00 and set an "outperform" rating for the company in a research report on Monday. Scotia dropped their target price on shares of Air Canada from C$33.00 to C$31.00 and set a "sector outperform" rating for the company in a research report on Friday, October 30th. Finally, Stifel Nicolaus cut their price target on shares of Air Canada from C$38.00 to C$32.00 and set a "buy" rating on the stock in a report on Thursday, October 29th. Eight equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of C$30.31.

Air Canada Price Performance

Shares of Air Canada stock opened at C$21.60 on Friday. Air Canada has a twelve month low of C$16.45 and a twelve month high of C$31.45. The stock has a market capitalization of C$5.46 billion, a P/E ratio of 21.82, a PEG ratio of 0.02 and a beta of 1.64. The company has a current ratio of 0.64, a quick ratio of 1.05 and a debt-to-equity ratio of 517.55. The business's fifty day moving average price is C$25.15 and its 200 day moving average price is C$22.39.

About Air Canada

Air Canada is Canada's largest airline, the country's flag carrier and a founding member of Star Alliance, the world's most comprehensive air transportation network. Headquartered in Montréal, Air Canada provides scheduled service directly to more than 180 airports in Canada, the United States and Internationally on six continents. It holds a Four-Star ranking from Skytrax. Air Canada's Aeroplan program is Canada's premier travel loyalty program, with more than 10 million members worldwide. Members can earn or redeem points on the world's largest airline partner network of more than 50 airlines, plus through an extensive range of merchandise, hotel and car rental partners.

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