Business & Investment

Air Canada Stocks: Just Buy and Ignore Newsflow

Investor Air Canada (TSX: AC) Equities have certainly seen recent volatility.Indeed, many oversized banks growth What resulted from the lifting of restrictions in the pandemic era was somewhat disappointing at this pace of resumption. In addition, this is a company that is fighting recent headlines that provide uncertainty to investors.

However, there is certainly a strong claim that Air Canada stocks may outperform in this environment. Let’s take a closer look at why investors now want to consider Air Canada.

Air Canada CEO doesn’t have to speak French

One of the headlines that some investors are worried about (and of course) is the criticism of Air Canada’s CEO’s language skills. Being a Montreal-based company, there seems to be an implicit agreement that all CEOs must be bilingual. Unfortunately, Michael Rousseau is still working on his French.

Rousseau recently postponed his French speech and said he was willing to adjust his skills before going on stage. That makes sense. However, politicians such as Francois Legor and Simon Jolin Barrett regarded this as an insult to Quebec’s culture.

Given that the CEO’s job is to help the company maximize profits, Rousseau does not need to speak French. Of course, given the history of Air Canada, it would be highly desirable if the CEO could speak both English and French fluently. That said, he has not been appointed as the preferred CEO. His job is to bring the greatest benefit to the company’s shareholders while keeping fares low.

In fact, there is little evidence that he failed to achieve the company’s goals. On the contrary, there is ample evidence to suggest a blatant exaggeration of Rousseau’s comments by some individuals.

There is optimism surrounding airline stocks

This year’s airline stock prices are a bit confusing.Because I hit the high price of $ 31 per share Earlier this year, Air Canada’s inventories have since fallen by about 25% to current levels. Overall, in terms of stock prices, we can argue that Air Canada’s stock prices were sluggish.

But compared to other growth sectors, airlines are actually quite well-held. There seems to be optimism among investors looking at sectoral recovery measures. In Canada, Air Canada continues to be the best airline to achieve such a recovery.

I think it’s worth considering a more optimistic view of Air Canada’s future. There are pessimistic reasons for investors who are bearish in the ability of airlines to make profits again. Global travel remains limited, fuel costs are high, and rising wages and other supply chain issues can impede margins in the short term.

But when it comes back to a fully reopened economy, Air Canada’s stock prices certainly look attractive at these levels. I think it’s a company that long-term investors forget to buy.

post Air Canada Stocks: Just Buy and Ignore Newsflow First appeared Motley Fool Canada..

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Stupid contributor Chris McDonald There are no positions in any of the listed stocks. The Motley Fool does not have a position in any of the shares mentioned.

Air Canada Stocks: Just Buy and Ignore Newsflow

https://www.fool.ca/2021/11/25/air-canada-stock-just-buy-and-ignore-the-news-flow/ Air Canada Stocks: Just Buy and Ignore Newsflow

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