Is Air Canada stock a buy after Ottawa’s decision?

Valuation looks reasonable at about 0.26x sales and 5.9x EV/EBITDA, but leverage and yield risk matter. Capacity from Gulf carriers could pressure fares, while the Emirates partnership may offset with more feed. Consider time horizon, position size, and watch February guidance before deciding.

How could UAE Canada flights affect fares and loads?

More weekly flights often mean sharper competition in premium cabins and stable or softer economy fares. Loads can improve with better schedules and connections, but yields may dip if capacity rises faster than demand. Loyalty and corporate contracts will be key to balancing traffic mix and pricing.

What does the Saudi air agreement change for investors?

The Saudi air agreement lifts weekly passenger flights to 14 and opens unlimited cargo, adding long-haul options into Canadian hubs. This can widen consumer choice and cargo lift, but may pressure unit revenue for incumbents. Investors should watch route launches, fare trends, and load factor developments.

Does the Emirates partnership reduce risk for Air Canada?

It helps. Extended codeshare through 2032 can deepen feed via Dubai to South Asia and Africa, supporting loads and loyalty. Still, overlapping capacity can compress yields. The net effect depends on schedule integration, on-time performance, and how well premium demand holds on Canada–Dubai flows.

Global Market Insights

AC.TO Stock Today: January 08 — Ottawa Lifts UAE, Saudi Flight Caps

ByHuzaifa Zahoor January 8, 2026January 8, 2026

Air Canada stock slipped today after Ottawa lifted flight caps on the UAE and Saudi Arabia, increasing long-haul competition into Canadian hubs. Shares of AC.TO traded near C$19.96, down 0.30%, between C$19.65 and C$20.07 on slightly above-average volume. The change allows 35 weekly passenger flights from the UAE and 14 from Saudi Arabia, plus unlimited cargo rights. We break down what this means for fares, load factors, and yields, and how the Emirates partnership through 2032 could support Air Canada stock in the near term.