01:01 PM EDT, 07/23/2024 (MT Newswires) -- Air Canada ( ACDVF ) pre-announced second quarter EBITDA and revised F2024 guide that are ~12% and ~13% below consensus, respectively, largely on the slower-than-anticipated yield environment, notes BMO.

According to BMO's Fadi Chamoun, this is "not an entirely surprising" announcement following recent results from global peers and supply-driven pressure on the Atlantic, a key profit segment for Air Canada ( ACDVF ). The airline is still on track to deliver the third-highest EBITDA in its history in F2024. Chamoun continues to expect fleet expansion in the coming years will support significant earnings/FCF growth.

Target price trimmed to $28 ($30 prior). Maintain Outperform.

Price: 16.46, Change: -0.19, Percent Change: -1.14