01:32 PM EDT, 10/15/2024 (MT Newswires) -- Canadian CPI data for September was released this morning, and the air transportation component decreased y/y for the third straight month, but was ahead of September 2019 (pre-COVID), notes National Bank.

"Our own fare surveys for Air Canada ( ACDVF ) suggest that domestic pricing is still generally higher y/y on the key routes that we track, and we have observed some strengthening overall in recent weeks," writes analyst Cameron Doerksen. "Looking ahead, industry capacity growth looks to be more rationale in the coming quarters with overall seat capacity in Q4 projected to be up just 2.0% y/y while an early look at the sun destination market this winter shows capacity relatively flat y/y, which could be beneficial to pricing."

Air Canada ( ACDVF ) is rated Outperform, with a $22 target.

Transat is rated Underperform, with a $1.50 target.

Price: 17.25, Change: +0.10, Percent Change: +0.58