Air Canada President and CEO Calin Rovinescu attends the company’s annual general meeting in Montreal, Friday, May 5, 2017. THE CANADIAN PRESS/Graham Hughes

Air Canada shares hit 10-year high

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.

Chief executive Calin Rovinescu says the results for this year’s second quarter, to be announced Aug. 4, were driven by higher revenue and lower than projected fuel costs.

He said in a news release that the quarter was capped by transporting nearly one million customers over the six-day Canada Day-Fourth of July period, including a single-day record of 166,850 passengers on June 29.

Walter Spracklin of RBC Capital Markets said the guidance reaffirmed his “bullish view” of the company.

He raised his target price for Air Canada to $25 from $21, saying the shares are undervalued.

Air Canada was expected to earn $19.5 million of net income in the second quarter on revenues of nearly $3.8 billion, according to analysts polled by Thomson Reuters.

Adjusted profits were forecast to be $45.7 million or 19 cents per share, down from $203 million or 72 cents per share a year ago.

Just Posted

Suspect arrested after collision in stolen truck

Driver faces charges in court today

WATCH: From humble beginnings Red Deer-based wrestling promotion is growing

It wasn’t that long ago that Dylon Featherstone and the Canadian Wrestling… Continue reading

WATCH: Families make yo-yos and weaved yarn at Red Deer Museum and Art Gallery

It was all about making yo-yos and yarn bombing at Red Deer… Continue reading

Solve mysteries with Sherlock Holmes and Dr. Watson in Red Deer

At three sold-out one act Sherlock Holmes plays in Red Deer, theatre… Continue reading

WATCH Replay Red Deer Feb. 18: Your weekly news highlights

Watch news from Red Deer and Central Alberta

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Toddler breaks leg after boot sucked into escalator at Vancouver airport

VANCOUVER — A Calgary woman is reminding parents about the dangers of… Continue reading

Liberals looking at creating use-it-or-lose-it leave for fathers, Trudeau says

OTTAWA — Prime Minister Justin Trudeau is raising the idea of creating… Continue reading

Trump gets angry about election meddling, but not at Russia

‘Weirdest thing’: Trump expresses anger, but not over Russian election-meddling

New doping charge could hurt Russia’s chance at reinstatement

Russia could lose its chance to be reinstated before the end of the Winter Olympics because of a doping charge against curling bronze medallist Alexander Krushelnitsky.

#Metoo movement causing confusion in many men, fear of missteps with women: experts

Being painted by the same sweeping brush as those alleged to have mistreated women has angered men

Virtue and Moir break their own world record

Virtue and Moir break short dance record to sit first in ice dance at Olympics

Calgary man dies in Mexico following sudden illness

Troy Black was with his wife, Lindsay, in Puerto Vallarta when he began vomiting blood on Thursday

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month