How to invest Air Canada Stock in Canada [2025]

Key Takeaways

• Air Canada (TSX: AC) saw Q3 2025 revenue of $5.77B and net profit of $264M, down 87% YoY due to labor disruptions and higher costs.
• The stock does not pay dividends and has never executed a stock split.
• Analysts maintain a "Buy" rating with price targets between CAD 22–27.
• Investors can buy shares via TFSA, RRSP, or taxable accounts through Canadian trading platforms.
• Alternative investments include ETFs like XGI.TO and ZIN.TO or trading Air Canada options for advanced strategies.

Air Canada (AC.TO) is the country's largest airline, renowned for its extensive global network and strategic sixth-freedom operations that connect U.S. passengers through Canadian hubs. Generating over CAD 22 billion in annual revenue, its core income derives from passenger flights across major regions including the Atlantic, domestic Canada, and transborder U.S. markets. With strong brand value, growing cargo operations, and a new share buyback program, Air Canada continues to position itself for long-term growth despite facing cost pressures and tight competition in international segments.

Source: moomoo, data as of 25-11-17.

Is Air Canada stock overvalued or undervalued?

Evaluating whether Air Canada (TSX:AC) is currently trading at a premium or discount involves more than simply looking at its latest movement in the Air Canada stock price. Canada's flagship airline has seen a sharp recovery post-pandemic, but recent labor disruptions and cost pressures have clouded the valuation picture. For Canadian investors considering how to buy Air Canada stock, it's crucial to assess the stock relative to its financial performance, operational efficiency, and broader market sentiment.

Despite a robust rebound in high-margin premium travel, softened Q3 results, driven largely by a temporary strike, have reignited the debate over Air Canada’s valuation. While institutional investor confidence remains relatively stable and upcoming route expansions could offer growth, profitability metrics have come under pressure. That said, many analysts still see upside potential based on fundamentals and price forecast targets. To gain clearer insight, let’s examine key indicators in more detail.

Key financial metrics for Air Canada

Source: moomoo, data as of 25-11-17.

Air Canada price forecast

The current Air Canada stock price may prompt questions about its trajectory, especially for long-term investors in Canada. Based on recent analyst coverage, the average price target for AC stock ranges from CAD 22 to CAD 27, with a consensus leaning toward a “Buy” rating. Institutions such as Scotiabank, RBC Capital, and BMO Capital have issued bullish forecasts, citing resilience in premium bookings and robust international demand.

Technical indicators also support cautious optimism. The MACD and KDJ signals show moderate upward momentum, while RSI levels suggest the stock isn’t currently overbought. However, the negative trailing twelve-month (TTM) earnings indicate continued volatility in valuation metrics. As Air Canada navigates cost management alongside regional expansions, short-term price fluctuations may persist, but investors eyeing a rebound narrative could find value in current levels.

For Canadians looking to time their entry point into the Air Canada stock price trend, assessing both fundamental and technical perspectives in conjunction with momentum indicators on platforms like moomoo can provide strategic clarity.

Air Canada earnings 2025 Q3 analysis

Source: Air Canada Financial Statements, data as of 2025-11-17

Air Canada's 2025 Q3 earnings took a sharp hit, with total revenue at $5.77 billion, reflecting a 5.44% year-over-year decline. The sharp drop in profitability is more striking. Operating profit plunged by 72.69% from a year earlier to $284 million, and net profit collapsed by an astounding 87.03% to $264 million. Think of it like running a full flight but only selling half the tickets — while operations continue, profitability drops off sharply. The severe drop in profits suggests lingering operational disruptions from the August flight attendant strike, combined with a slowdown in cross-border travel demand. The latest Air Canada earnings call shed light on this, revealing that gains in front-cabin and corporate travel helped support the quarter, but not enough to fully offset labor-related headwinds.

According to the November 5 Air Canada earnings call transcript, improved performance in premium cabins and international travel provided some tailwinds, but the airline admitted that yield pressures and regulatory changes impacted margins. On a positive note, the company beat EPS expectations, reporting $0.88 CAD versus the analyst estimate of $0.53 CAD. However, this figure still represents an 83.64% decline compared to last year, showing how much the strike weighed on results. The earnings call also underlined a newly signed four-year agreement with pilots, signaling fewer future disruptions. For investors tracking the Air Canada earnings date rhythm, Q3 2025 was a cautionary tale about how even strong international demand can't fully shield airlines from labor shocks.

Air Canada stock split analysis

Air Canada (ticker: AC.TO) has never executed a stock split in its trading history on the Toronto Stock Exchange. For Canadian investors hoping to assess the stock price movements and shareholder dilution possibilities, this means that the Air Canada stock split history currently stands void of any activity. While some companies implement stock splits to improve liquidity and lower share price entry barriers, Air Canada has opted to maintain its capital structure without splitting shares. This clean split history could suggest management’s preference for stability in Air Canada's share price or a strategic focus on long-term shareholder value without increasing share count. Investors looking to buy Air Canada stock may factor in this absence of stock splits when evaluating its historical performance and ownership strategy.

Source: moomoo, data as of 25-11-17.

Air Canada dividends analysis

When evaluating potential investment opportunities in the Canadian stock market, the presence or absence of dividends plays a significant role in shaping investor strategy. In the case of Air Canada (AC.TO), the stock is currently categorized as a non-dividend-paying equity. This characteristic aligns with many companies in capital-intensive industries like aviation, which often prioritize reinvestment and debt servicing over regular shareholder payouts.

As of the most recent data available, Air Canada has not declared or paid any dividend distributions. Major financial platforms such as Yahoo Finance and HL.co.uk confirm the absence of both historical and forward dividend data. This is consistent across different listings including Air Canada’s TSE (Toronto Stock Exchange) and OTC markets. The company’s financial focus remains on operational performance, managing its leverage, and navigating sector-specific headwinds.

For Canadian investors seeking growth-oriented opportunities rather than recurring income, AC.TO may still hold appeal due to its positioning in a recovering travel sector. However, for those prioritizing passive income through dividend stocks, alternative options in sectors like utilities or financials may be better aligned with income-focused strategies.

Investors should weigh their personal goals, whether that’s capital appreciation or dividend income, when considering Air Canada shares, especially in the context of their overall portfolio strategy.

Source: Yahoo Finance, HL.co.uk, data as of 2025-11-17.

Can I Invest Air Canada stock with a TFSA or RRSP?

Canadian investors can absolutely consider Air Canada (AC.TO) when using registered accounts such as a TFSA or RRSP. Since Air Canada is listed on the Toronto Stock Exchange, it's eligible for both accounts without foreign withholding tax concerns. Buying Canadian stocks like Air Canada in a TFSA allows your investment gains to grow tax-free, which is particularly attractive for long-term growth plays in sectors like transportation. Likewise, if you're saving for retirement, you can buy stocks with your RRSP, deferring taxes until withdrawal. While some focus on buying U.S. stocks in a TFSA, keeping core Canadian holdings like Air Canada in registered accounts offers diversification without currency risk or cross-border tax complications.

How to invest Air Canada stock in Canada?

If you're a busy professional based in Canada looking to invest in Air Canada stock (TSX:AC), you’re not alone. As one of the country's largest airlines and a significant player in international aviation, investing in Air Canada offers exposure to both domestic and global travel growth. Here’s a simplified step-by-step guide to help Canadians begin their investment journey.

Step 1: Pick a stock trading platform

The right trading platform can save you time and simplify the investing process. When choosing a platform to invest in Air Canada stock, consider the following factors:

• User interface and mobile access: Opt for platforms that are mobile-friendly and easy to navigate, especially if you have limited time outside of work.
• Access to Canadian exchanges: Ensure the platform supports trading on the Toronto Stock Exchange (TSX), where AC.TO is listed.
• Fees and commissions: Look for platforms with low or no trading commission, foreign exchange fees, and account maintenance charges.
• Research tools and customer support: Tools like charting, analyst insights, and responsive support can streamline your decision-making.

Step 2: Choose the right account type and open an account

Investors in Canada can use several types of brokerage accounts to buy Air Canada stock. Each has its own benefit depending on your financial goals:

• Tax-Free Savings Account (TFSA): Grow your Air Canada investment tax-free. Ideal for long-term holding.
• Registered Retirement Savings Plan (RRSP or SRRSP): Contributions are tax-deductible and suitable for retirement-focused investing.
• Margin Account: Allows borrowing to leverage trades, suitable for advanced investors with higher risk tolerance.
• Cash Account: Basic and easy-to-manage account where you trade using only your deposited funds.

To open a brokerage account in Canada, you typically need to provide your SIN (Social Insurance Number), a valid government-issued ID, proof of address, and employment details. Setup can usually be completed online in 10 to 30 minutes.

Step 3: Fund your account

Once your account is active, you need to transfer funds. Popular deposit methods include Interac e-Transfer, direct bank linking (such as PAD or EFT), wire transfer, and bill payment through online banking. Funding times vary—instant for Interac, up to a few days for EFT or wire transfers.

Step 4: Research Air Canada's fundamentals

Before purchasing, analyze Air Canada's key financial indicators. As of Q3 2025, the airline recorded $5.77 billion in revenue and a net profit of $264 million. However, EPS declined year-over-year, and the airline faces industry risks such as regulatory changes and fuel costs. Examine core revenue segments like U.S. transborder (19.5%) and Atlantic (27.5%) travel to understand growth drivers. Also, evaluate recent analyst ratings, most of which currently rate AC stock as a “Buy” with price targets around $24–$27.

Step 5: Set a budget for your Air Canada stock purchase

Decide how much of your portfolio you want to allocate to airline stocks. Here are key budgeting tips for Canadian investors:

• Set your investment based on available funds, risk tolerance, and overall portfolio allocation strategy.
• Ensure you’ve built an emergency savings fund before exposing capital to equity markets.
• If a single Air Canada share is too expensive, check if your broker allows fractional share investing. This lets you buy a portion of a share to get started.

Step 6: Place your Air Canada's order

After funding your account and deciding how much to invest, go to your broker’s trading platform. Search for the ticker symbol "AC" on the TSX, choose the number of shares or dollar amount, and select the order type (market, limit, etc.). Review and confirm your trade.

Step 7: Monitor and manage your investment

Post-purchase, monitor Air Canada’s earnings, operational updates, and price movements. Consider setting price alerts. Periodically review your investment in the context of your broader financial goals. Adjust your position if the company’s fundamentals or airline industry outlook changes significantly.

Alternative ways to invest in Air Canada?

Directly buying individual shares of Air Canada (AC.TO) is one approach to gain exposure to Canada’s largest airline. However, Canadian investors also have access to diversified investment vehicles that include Air Canada as part of a broader portfolio.

Air Canada ETFs

Investing through Exchange-Traded Funds (ETFs) can offer more diversification compared to buying a single stock. ETFs that include Air Canada may reduce company-specific risk while providing exposure to the broader industries of transportation or Canadian equities.

• BMO Equal Weight Industrials Index ETF (ZIN.TO): This ETF tracks a diversified basket of Canadian industrial companies and may include Air Canada as part of its transportation sector exposure.
• iShares S&P/TSX Capped Industrials Index ETF (XGI.TO): Designed to replicate the performance of the Canadian industrial sector, this ETF includes select industrial stocks, which often feature leading airline operators like Air Canada.
• Horizons S&P/TSX 60 Index ETF (HXT.TO): Although broader in scope, this ETF tracks large-cap Canadian companies and can include Air Canada based on its market capitalization and sector representation.

Air Canada options

For experienced investors, options trading offers an alternative way to participate in Air Canada’s price movements without directly owning the stock. Canadian-listed Air Canada options can be used for strategies such as hedging existing positions, speculating on volatility, or generating income through covered calls. While options provide flexibility, they carry unique risks and are more suitable for those with an understanding of derivatives.

Stocks similar to Air Canada

If you are looking to diversify within the transportation or airline sector, several Canadian and North American companies offer similar investment profiles to Air Canada.

• WestJet Airlines (private): Originally a public competitor, WestJet offers similar exposure to domestic air travel in Canada, though it is now privately held by Onex Corporation.
• Delta Air Lines (DAL.US): A major U.S. airline that operates globally, offering broader international exposure and a different revenue structure compared to Canadian carriers.
• United Airlines Holdings (UAL.US): Another large U.S. airline with expansive global routes, often used as a benchmark for North American air travel trends.

Is it a good time to invest in Air Canada stock?

Assessing the investment potential of Air Canada (TSX: AC) requires a nuanced view of its recent performance and market conditions in Canada. As of November 15, 2025, Air Canada is trading at USD 18.64, slightly down from its recent peak of USD 19.03 on November 12. Despite short-term fluctuations, the stock is up approximately 5.3% over the past month.

However, financial indicators present a mixed picture. While Q3 2025 earnings showed an EPS of CAD 0.88—beating estimates of CAD 0.53—net profit shrank by 87% year-over-year to CAD 264 million. This decline is partly due to labour disruptions and elevated operating costs. Additionally, its price-to-earnings ratio has turned negative (PE TTM: -27.01), indicating past earnings losses.

From a balance sheet perspective, the company’s debt-to-assets ratio remains high at 92.97%, limiting financial flexibility. At the same time, institutional investors like RBC and Vanguard maintain significant holdings, implying sustained institutional interest.

Canadian investors should weigh Air Canada's operational improvements—such as capacity expansion and revived corporate travel—against structural risks like competitive pressures and an evolving regulatory landscape that could impact profitability.

Source: moomoo, data as of 25-11-15.