11:34 AM EST, 01/15/2025 (MT Newswires) -- RBC reports that its Canadian Airlines Heatmap points to weaker leading indicators, including airfares, web traffic, and decelerating North American RPKs (revenue passenger kilometre).

The focus for Air Canada ( ACDVF ) remains on 2025, which analyst James McGarragle expects to be a tough operating environment. McGarragle's Street-low estimates move lower on fuel, reflecting hisview that yields will remain pressured from a weaker consumer, currency headwinds and increased industry capacity.

RBC's Business Jet Heatmap also indicates minor y/y activity declines, low used inventories and solid fractional operator growth highlighting a continued supportive demand backdrop. "[We] temper our 2025E margin for Bombardier on persistent engine supply chain issues, however, remain in line with company's guidance and see an expected 2025 FCF inflection as a key catalyst."

Air Canada ( ACDVF ) -- Sector Perform, $23 target.

Bombardier -- Outperform, target lowered to $130 (from $133). "BBD remains our top idea."

CAE -- Outperform, target raised to $38 (from $23).

Chorus Aviation ( CHRRF ) -- Outperform, $3.75 target.

Exchange Income Corp ( EIFZF ) -- Outperform, $71 target.

Price: 20.99, Change: -0.26, Percent Change: -1.22