Why did Air Canada beat estimates in Q4?

Management shifted capacity away from softer Canada–U.S. routes toward domestic, Atlantic, and Pacific markets. Cargo and a pickup in corporate demand added support. The broader route mix and pricing discipline helped protect yields and load on long-haul corridors, delivering C$296 million in net income and a clear Q4 profit beat.

Is Air Canada stock cheap after the earnings beat?

By sales and cash flow, it looks reasonable: price-to-sales near 0.28, EV/EBITDA around 5.99, and free cash flow yield about 12%. The negatives are a negative TTM P/E, elevated leverage, and modest liquidity. The valuation case improves if margins hold and debt metrics trend lower through 2026.

What technical levels matter right now?

Watch the 50-day average at C$19.41 for trend support and the intraday high near C$21.23 as resistance. RSI around 58 and a positive MACD suggest momentum is intact. A decisive close above the upper Bollinger band near C$20.26 could open a move toward the 52-week high at C$23.72.

What are the main risks for 2026?

Key risks are higher jet fuel, wage pressures, and a weaker Canadian dollar. Trade tensions may prolong the transborder demand slump. Geopolitics on Atlantic or Pacific lanes can disrupt premium traffic. With leverage still high, any shock to yields or load factors could weigh on cash flow and guidance.

Global Market Insights

AC.TO Stock Today: February 16 – Profit Beat as U.S. Slump Offset

ByDanny Kontos February 16, 2026February 16, 2026

Air Canada stock is in focus today after a reported Q4 profit beat. The carrier delivered net income of C$296 million as management shifted capacity away from softer Canada–U.S. routes toward domestic, Atlantic, and Pacific markets. Shares of AC.TO recently traded near C$20.25, above the 50-day average of C$19.41 and the 200-day average of C$19.09. Investors in Canada are asking if this mix shift can protect margins through 2026 while trade tensions continue to pressure transborder demand. We break down results, valuation, technicals, and key risks.