Air Canada: Revenue Growth Impressive, But Caveats Remain

Oct. 29, 2022 6:53 AM ETAir Canada (AC:CA), ACDVF
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Discount Fountain
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Summary

  • Air Canada has seen impressive revenue growth over the past year.
  • However, the company is still operating at a net loss.
  • Investors will want to see evidence of a reduction in long-term debt going forward.

Air Canada Boeing 787-9 Dreamliner airplane Frankfurt Airport in Germany

Boarding1Now/iStock Editorial via Getty Images

Investment Thesis: While revenue growth has been encouraging, investors will want to see further evidence that the company can return to profitability and sustainably reduce its long-term debt.

In a previous article back in August, I

investing.com

investing.com

Air Canada Condensed Consolidated Financial Statements and Notes Quarter 3 2019

Air Canada Condensed Consolidated Financial Statements and Notes Quarter 3 2019

Air Canada Condensed Consolidated Financial Statements and Notes Quarter 3 2022

Air Canada Condensed Consolidated Financial Statements and Notes Quarter 3 2022

News Release: Air Canada Reports Third Quarter 2022 Financial Results

News Release: Air Canada Reports Third Quarter 2022 Financial Results

This article was written by

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I am an independent investor with an interest in analyzing stocks across the consumer, finance, telecommunication, and travel sectors. As a data scientist, I also have a great interest in using data tools to better understand a company's financial position.Some examples include:- Aggregating quarterly churn and ARPU data for Deutsche Telekom (DTEGY) and analysing trends over time using SQL: https://seekingalpha.com/article/4516805-deutsche-telekom-growth-potential-remains- Building a Monte Carlo simulation in Python to analyze loss ratios for Zurich Insurance Group (ZURVY): https://seekingalpha.com/article/4459821-zurich-insurance-stock-solid-insurance-company-still-faces-risks- Examining ADR and RevPAR trends by brand for Hilton Worldwide Holdings (HLT) using SQL: https://seekingalpha.com/article/4517248-hilton-worldwide-holdings-an-analysis-of-adr-and-revpar-trendsDisclaimer: All of the author's articles are written on an "as is" basis and without warranty. They represent the author's opinion only and in no way constitute professional investment advice. It is the responsibility of the reader to conduct their due diligence and seek investment advice from a licensed professional before making any investment decisions. The author disclaims all liability for any actions taken based on the information contained in any articles published.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This article is written on an "as is" basis and without warranty. The content represents my opinion only and in no way constitutes professional investment advice. It is the responsibility of the reader to conduct their due diligence and seek investment advice from a licensed professional before making any investment decisions. The author disclaims all liability for any actions taken based on the information contained in this article.

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