“Is Air Canada stock a buy right now? Airlines stocks such as Air Canada are known for being both volatile and potentially profitable. Let’s take a closer look to see if investing in Air Canada is a smart move.
**Air Canada: A quick recap**
Before the pandemic, Air Canada was performing exceptionally well, with its stock price soaring over 1,300% in the period between December 2010 and December 2019. However, when the pandemic hit, the airline’s operations came to a halt, causing its stock price to drop significantly.
The stock currently trades just over $18, which is $2 off from its 52-week low. This might be a reason for long-term investors with an appetite for risk to consider buying Air Canada stock now.
**Air Canada: A case to buy**
Travel demand is now hitting pre-pandemic levels, as evident in Air Canada’s most recent quarterly update. The operating revenues surged 19% over the same period last year, and the airline posted earnings of $1.281 billion for the quarter, showing improvement from the prior period. With revenue and earnings rising, the stock may begin an upward movement.
**Air Canada stock: Is there a reason to hold or even sell it?**
While there is a significant upside to buying Air Canada stock right now, it also comes with considerable risk. Airlines are big, expensive ventures with small margins, subject to factors such as changing labour standards, legislation, and weather in local and international markets.
In short, while Air Canada stock may trade at a discount, it’s not without considerable risk. Unless you’re a long-term investor with an appetite for risk or already invested in Air Canada stock, there are other options to consider.
Investing in Air Canada stock at this point will ultimately depend on whether you believe the airline can overcome these challenges and return to pre-pandemic levels of success. The decision is yours.”
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