Content and data provided by various third parties and Fidelity - Terms of Use
Print.Print
Small font size A Larger text size A Largest text size A

Stifel Canada on Decline in May Air Transportation Figures and Air Canada

BY MT Newswires | ECONOMIC | 06/25/25 12:58 PM EDT

12:58 PM EDT, 06/25/2025 (MT Newswires) -- Canadian CPI data released this week showed a 10.1% decline in the air transportation component but fuel prices are also down ~20% impacting airfares, notes Stifel Canada's Daryl Young.

Screened passengers through Canadian and U.S. airports has remained largely stable, but Canadian total passengers were up 2.2% in May. A breakdown of geographic travel data has not yet been published for May but Young reports hearing anecdotes of early recovery in U.S. transborder travel.

"We acknowledge that the Canadian consumer remains very stretched and tariff-related price hikes are just starting to percolate through but it does appear that the worst-case tariff outcome has been avoided and the C$ has rebounded, setting the stage for AC shares to claw-back valuation."

Air Canada (ACDVF) has a Buy rating and a $23 price target.

Price: 19.98, Change: +0.24, Percent Change: +1.22

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

More Fixed Income News

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

© 1998 – 2014 FMR LLC.

All rights reserved.
fir_news_article