Air Canada’s Poor Track Record and Its Impact on Stock Performance

Poor On-Time Arrivals

Air Canada had one of the worst track records for on-time arrivals among North American carriers in 2024, ranking dead last among the major airlines. According to reports, Air Canada managed to get its customers to their destinations on time only 71% of the time, while WestJet Airlines fared slightly better with an on-time percentage of 70%. In contrast, Delta Air Lines had an impressive on-time arrival record of 83%, followed by United Airlines at 80%.

Poor Service and High Fees

Air Canada’s poor showing is not new. The airline has consistently ranked low in terms of pricing, customer service, and on-time arrivals. Recently, Air Canada announced plans to ban carry-on bags and impose a seat selection fee for its lowest-fare customers starting in 2025. This move may further alienate its customers, potentially affecting its reputation and stock performance.

Stock Performance

Air Canada’s stock has declined significantly since the Covid-19 pandemic struck in 2020. The current consensus among Wall Street analysts is that the stock has a Strong Buy rating, with an average price target of C$27.95 implying 25.98% upside from current levels.

Is AC Stock a Buy?

While some analysts are optimistic about Air Canada’s prospects, the airline’s poor track record and plans to impose additional fees raise concerns about its ability to turn things around. As of now, the stock has a Strong Buy rating, but it remains to be seen whether this will translate into actual performance.