Stifel Canada on Delta Air Lines Q1's Implications For Air Canada

Delta Air Lines reported upbeat fiscal first-quarter results along with a positive outlook that bodes well for Air Canada as the airline heads into the peak summer season, writes Stifel Canada."While it's challenging to draw direct readthroughs from Delta's results to Air Canada, we are broadly encouraged by the continued booking strength and customer willingness to absorb higher pricing," writes analyst Daryl Young, who is maintaining a buy rating and C$28.00 price target on Air Canada shares.Young thinks the airline industry is continuing to act more rationally regarding capacity allocation and profitability than in prior cycles. He also notes that Air Canada was active on its NCIB during the first quarter right through March, acquiring roughly six-million shares or ~2% of the float; "we think this is likely a positive indication of AC's confidence in its bookings and liquidity position".Price: $18.88, Change: $+0.35, Percent Change: +1.89%

-- Delta Air Lines reported upbeat fiscal first-quarter results along with a positive outlook that bodes well for Air Canada as the airline heads into the peak summer season, writes Stifel Canada.

"While it's challenging to draw direct readthroughs from Delta's results to Air Canada, we are broadly encouraged by the continued booking strength and customer willingness to absorb higher pricing," writes analyst Daryl Young, who is maintaining a buy rating and C$28.00 price target on Air Canada shares.

Young thinks the airline industry is continuing to act more rationally regarding capacity allocation and profitability than in prior cycles. He also notes that Air Canada was active on its NCIB during the first quarter right through March, acquiring roughly six-million shares or ~2% of the float; "we think this is likely a positive indication of AC's confidence in its bookings and liquidity position".

Price: $18.88, Change: $+0.35, Percent Change: +1.89%