Air Canada (TSX:AC) has failed to gain any significant momentum in 2022. Fortunately, there are many positives investors can glean from the commercial airline industry as the COVID-19 pandemic has dissipated. Shares of Canada’s top airliner have increased 3.6% in mid-afternoon trading on May 3. This has pushed the stock into the black in the year-to-date period.
Commercial airliners have been able to steadily increase capacity over the past year. However, Air Canada and its peers have still not recovered to levels before the beginning of the COVID-19 pandemic. The company plans to operate at 80% capacity this summer. That should pique the interest of investors in the middle of the spring season.
The company released its first quarter 2022 results on April 26. It reported operating revenues of $2.57 billion – up from $729 million in the previous year. Meanwhile, its operating loss improved to $550 million compared to an operating loss of $1.04 billion in first quarter of 2021. On the operation side, Air Canada saw huge improvement. Revenue passenger miles (RPMs) delivered 417% growth and seats dispatched surged 236% from the previous year.
Shares of Air Canada are trading in favourable value territory compared to its industry peers. The company is geared up to deliver strong earnings growth as it marches back to full capacity. This top airline stock still looks undervalued in the beginning of May. I’m looking to snatch up Air Canada right now.