04:40 PM EDT, 07/03/2024 (MT Newswires) -- Short sellers are targeting Canada's biggest publicly traded airline as investors expect rising operational costs and weaker post-pandemic consumer demand to weigh on growth, Bloomberg News is reporting Wednesday.

It noted Air Canada's ( ACDVF ) short interest as a percentage of float -- a metric that measures how many traders sold shares compared to the total amount of stock available to trade -- stood at nearly 19% in early July, according to financial data firm S3 Partners LLC.

According to Bloomberg, this is more than double the 7.4% rate a year earlier, signaling that investors expect shares to come under further pressure as Canadians allocate more of their pay to cover higher costs of living. It's also the highest rate recorded since December 2021 when additional COVID-19 travel restrictions were imposed, sending the rate to nearly 21%.

Bloomberg noted shares of the Canada airline operator are trading 4.7% lower this year as economic and industry headwinds have taken their toll. The stock is also trading far below its pre-pandemic range, hitting a high of around $50.05 (US$36.74) in November 2019.

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