01:45 PM EST, 03/05/2024 (MT Newswires) -- National Bank reviews the trans-Atlantic destination markets for the upcoming summer and what it means to Air Canada ( ACDVF ) and Transat.

Key Takeaways:

The trans-Atlantic (Canada to Europe) has historically been an important market for Canada's air carriers and is one of the largest drivers of profitability in the peak summer period, writes analyst Cameron Doerksen. In the first full post-pandemic summer for air travel, last summer saw exceptionally strong demand and pricing for Canada's airlines on routes to Europe.

"While we expect demand for Canada-Europe flights to remain strong for summer 2024, a 13.6% y/y increase in industry capacity may put some downward pressure on prices."

Air Canada ( ACDVF ) is rated Outperform, with a $31 target.

Transat is rated Underperform, with a $3.25 target.

Price: 18.05, Change: -0.01, Percent Change: -0.06