Written by Andrew Button at The Motley Fool Canada
Air Canada (TSX:AC) has been one of the worst-performing Canadian stocks over the last five years. Down 57% in a period in which the broader markets have risen, it has chronically underperformed. Amazingly, this underperformance has occurred despite a period of rising earnings for the company.
After losing about $4 billion in 2022, Air Canada’s earnings steadily recovered in 2022 and 2023, to the point where it is now earning more than it did in 2019, before the COVID-19 pandemic hit Canada. Despite this, the stock trades at $16.99, while it traded at $54 before the pandemic. The question is, why isn’t Air Canada re-taking its previous valuation?
Buffett sold
The reason why airline stocks in general, and Air Canada in particular, remain down for the count is because sentiment toward the sector is poor. A possible reason for that is the fact that Warren Buffett…
