Air Canada (OTCMKTS:ACDVF) Shares Gap Up Following Better-Than-Expected Earnings

Air Canada (OTCMKTS:ACDVF)’s stock price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $14.36, but opened at $15.37. Air Canada shares last traded at $15.31, with a volume of 3,199 shares.

The company reported $0.47 earnings per share for the quarter, topping analysts’ consensus estimates of $0.20 by $0.27. Air Canada had a return on equity of 24.22% and a net margin of 2.92%.The company had revenue of $4.19 billion during the quarter, compared to the consensus estimate of $5.56 billion.

Air Canada News Summary

Here are the key news stories impacting Air Canada this week:

• Positive Sentiment: Q4 profitability and EPS beat — Air Canada reported a return to profit (C$324M) and EPS of $0.47, beating consensus and reversing a year‑ago loss, which underpins the rally. Air Canada Swings to Profit (WSJ)
• Positive Sentiment: Record revenue and strong cash generation — The company reported record operating revenues for 2025 and strong operating cash flow and free cash flow, improving liquidity and giving management optionality. Air Canada Reports Q4 and FY2025 Results (GlobeNewswire)
• Positive Sentiment: Momentum into 2026 — Management signaled a strong start to 2026 with improving bookings vs. 2025, which traders interpreted as upward revenue/capacity momentum. Air Canada Shares Surge (Financial Post)
• Positive Sentiment: Market diversification and corporate demand shift — Management said diversification beyond U.S. markets has softened the impact of weaker U.S. travel, and corporate demand is shifting toward Europe and the Pacific, supporting international revenue mix. Market Diversification Mitigates U.S. Drop (MSN) Corporate Demand Shifting (Business Travel News)
• Positive Sentiment: Fleet modernization — Air Canada disclosed an order for eight A350‑1000s (options to expand), signaling capacity refresh for long‑haul growth and potential unit cost improvements over time. Air Canada Orders A350s (Aviation Week)
• Neutral Sentiment: Analyst stance unchanged — Jefferies maintained a Hold rating, citing solid near‑term execution but limited visibility on medium‑term earnings, which tempers some investor enthusiasm. Jefferies Hold Rating (TipRanks)
• Negative Sentiment: Revenue/metric discrepancies and margin pressure — Some line‑item revenue figures cited by aggregator reports were below certain analyst expectations and the company still shows a negative net margin on reported metrics, highlighting execution risks and near‑term margin pressure. ACDVF Market Summary (MarketBeat)

Wall Street Analyst Weigh In

ACDVF has been the subject of several recent analyst reports. Zacks Research upgraded Air Canada from a “strong sell” rating to a “hold” rating in a research note on Tuesday, January 27th. Scotiabank reissued an “outperform” rating on shares of Air Canada in a research note on Wednesday, January 21st. Finally, UBS Group raised shares of Air Canada to a “hold” rating in a report on Tuesday, November 18th. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold”.

Air Canada Price Performance

The stock has a market capitalization of $4.37 billion, a price-to-earnings ratio of 10.28 and a beta of 1.44. The business’s fifty day moving average price is $14.17 and its 200-day moving average price is $13.71. The company has a debt-to-equity ratio of 3.99, a current ratio of 0.59 and a quick ratio of 0.56.

Air Canada Company Profile

Air Canada is the largest airline in Canada and one of the leading carriers in North America. Founded in 1937 as Trans-Canada Air Lines and rebranded as Air Canada in 1965, the company operates scheduled passenger and cargo services on six continents. The airline maintains membership in the Star Alliance network, offering seamless connections and coordinated loyalty benefits to travelers worldwide.

Through its mainline operations and subsidiaries—including Air Canada Rouge, Air Canada Cargo and Air Canada Vacations—the company provides a broad range of services.