Scotiabank Forecasts Air Canada's FY2026 Earnings (TSE:AC)

Key Points

• Scotiabank cut Air Canada’s FY2026 EPS forecast to C$0.80 from C$1.50, well below the consensus estimate of C$2.58, while maintaining a “Sector Outperform” rating and C$33 price target.
• Analysts remain broadly positive: Air Canada has a “Moderate Buy” consensus rating, with eight Buy, two Hold and one Sell rating, and a consensus price target of C$32.73.
• Air Canada shares opened at C$21.55 and were up 2.1%; the company reported quarterly EPS of C$0.40 on revenue of C$6.27 billion in its latest earnings release.

Air Canada (TSE:AC - Free Report) - Stock analysts at Scotiabank decreased their FY2026 EPS estimates for shares of Air Canada in a research report issued to clients and investors on Thursday, October 22nd. Scotiabank analyst K. Gupta now expects that the company will post earnings of $0.80 per share for the year, down from their previous forecast of $1.50. Scotiabank 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 $1.37 EPS.

Other equities analysts have also issued reports about the stock. BMO Capital Markets lifted their target price on shares of Air Canada from C$30.00 to C$37.00 and gave the company an "outperform" rating in a report on Wednesday, August 12th. UBS Group raised their price target on shares of Air Canada from C$24.00 to C$33.00 in a research report on Thursday, August 13th. Stifel Nicolaus raised their price target on shares of Air Canada from C$30.00 to C$38.00 and gave the company a "buy" rating in a research report on Wednesday, August 19th. Scotia lifted their price objective on shares of Air Canada from C$33.50 to C$37.50 and gave the company a "sector outperform" rating in a report on Wednesday, August 19th. Finally, Canadian Imperial Bank of Commerce upped their price objective on shares of Air Canada from C$26.00 to C$40.00 in a research report on Friday, August 14th. Eight equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Air Canada has a consensus rating of "Moderate Buy" and a consensus price target of C$32.73.

Air Canada Stock Up 2.1%

AC stock opened at C$21.55 on Tuesday. The company has a market capitalization of C$5.45 billion, a P/E ratio of 16.45, a price-to-earnings-growth ratio of 0.02 and a beta of 1.86. Air Canada has a 12 month low of C$16.45 and a 12 month high of C$31.45. The firm's fifty day simple moving average is C$26.50 and its 200-day simple moving average is C$22.30. The company has a debt-to-equity ratio of 478.10, a current ratio of 0.60 and a quick ratio of 1.05.

Air Canada (TSE:AC - Get Free Report) last announced its earnings results on Tuesday, August 11th. The company reported C$0.40 EPS for the quarter. Air Canada had a net margin of 1.82% and a return on equity of 16.92%. The business had revenue of C$6.27 billion during the quarter.

Air Canada Company Profile

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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