Air Canada’s valuation remains lower than peers as work continues on its long haul expansion

Although Air Canada is one of the most venerable brands in North American aviation, its executives stress the airline remains in the midst of a business transformation with a major focus on strategic long haul expansion, reflected by significant growth in international markets during 2015 that is continuing full force into 2016.

The company still trades below most of its full service North American peers, and Air Canada executives attribute part of the weaker valuation to markets adopting a “wait and see” approach to the company’s current expansion strategy.

In the meantime, Air Canada remains focused on strengthening its balance sheet in order to gain favourable aircraft financing. It has a steady stream of 787 deliveries scheduled for the next couple of years before its 61 Boeing 737 Max aircraft begin delivery in 2018.

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