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  5. AC: In looking at a long term chart for AC it appears there is some seasonality to the stock's price, with the price peaking in January. [Air Canada Voting and Variable Voting Shares]
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Q: In looking at a long term chart for AC it appears there is some seasonality to the stock's price, with the price peaking in January. In my experience air lines do not make good long term holds but there appears to be a potential to take advantage of the stocks seasonality. Please confirm if my observation is correct and provide your thoughts on Air Canada's current financial health and near term opportunity for growth. Thanks.
Asked by Scott on October 20, 2025
5i Research Answer:

Since 2006, the stock has shown a bit of seasonality in the first quarter, with January generally good, but we are not quite sure the performance would be statistically significant. There has been huge variability in performance. The balance sheet is reasonable: $11.7B debt, $6.4B cash and annual cash flow $3.8B. It should be OK financially if we get a recession but of course the stock could get hit. Consensus calls for EPS to more than double in 2026. With its relatively low valuation the shares 'could' do well IF it could meet this forecast. But its execution record is not solid in this regard. It has been buying back stock and the share count is down about 19M since December. Shares are down 19% this year and could see some year-end pressure. We do not think it needs to be owned right now.