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Air Canada stock has risen by more than 50 per cent in the past five weeks.
Air Canada stock has risen by more than 50 per cent in the past five weeks.
(Fred Lum/The Globe and Mail)

Buy Air Canada, not WestJet, says analyst

Raymond James analyst Ben Cherniavsky prefers shares in U.S. airlines over Canadian ones, but says buying Air Canada stock is a way to capitalize on improving sentiment in the sector.

Air Canada shares have doubled in price since August to more than $5.25 and outperformed the broader Toronto Stock Exchange, but Mr. Cherniavsky said in a note on Tuesday they should rise to $7. He said Air Canada should enjoy a reduction in non-fuel costs per available seat mile, a key measure of an airline’s ability to profit, and is more exposed to strong international markets than rival WestJet Airlines Ltd.