Air Canada surges on upbeat demand outlook, $1.8 billion loyalty program deal

Air Canada

12/08/2026 15:13

** Air Canada's AC.TO shares surge nearly 14% to C$31
** Canada's largest carrier says it expects one of its strongest fall seasons, helped by corporate travel; sees cost performance improving in second half of 2026
** The airline had said funds managed by Blackstone and three Canadian asset managers would invest C$2.5 billion ($1.80 billion)for a 25% stake in its loyalty program Aeroplan
** As part of the deal, the airline can repurchase that stake between 5 and 8 years after closing at a price that provides an internal rate of return of 6.5%
** TD Cowen analysts say this "is very attractive" while adding that AC's plans for proceeds from the deal are "very favorable"
** Analysts on average rate the stock "buy", same as its North American peers - data compiled by LSEG
** Stock up around 60% so far this year

($1 = 1.3915 Canadian dollars)

 (Reporting by Nandan Mandayam in Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))