Stifel Canada Notes Airfare CPI Declines Moderate in October

01:22 PM EST, 11/19/2025 (MT Newswires) -- Canadian CPI data released this week showed a -4.7% y/y decline in the October air transportation component.

Stifel Canada notes that the Air Canada (ACDVF) flight attendant strike may have been a contributor to the weakness in airfares in August-October due to possible discounting to offset book-away.

Fuel prices were up +4.2% y/y in October, following the increase of +5.4% in September (the first instance of y/y growth in 13 months). Passenger traffic remains strong. Based on preliminary CATSA data, the volume of screened traffic (passenger and non-passenger) through Canadian airports was up +4.4% y/y in October, continuing September's +4.3% y/y growth and rebounding from a flat August (impacted by the AC strike).

U.S. passenger travel is also up +4.0% y/y, consistent with U.S. airline commentary that main cabin has been recovering into year-end.

Air Canada (ACDVF) is rated Buy, with a $24 price target.

Price: 17.87, Change: +0.03, Percent Change: +0.17

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