Winter in Canada is a lot like winter in large parts of the United States, and Europe as well. Cold, snowy, and often unpleasant, it is small wonder that some start looking for a way out, even if only for a little while. Canadian airline stock Air Canada (TSE:AC) has just the ticket for those looking for a warm-weather escape starting this winter: Latin America. The news proved a little too hot for investors to handle, though, as shares slipped nearly 1.5% in Wednesday morning’s trading.
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With Canadians increasingly turning their backs on the United States and its travel opportunities like California, Texas and Florida, Latin America is starting to look quite attractive. The plan is to offer service to Lima, Peru this winter, twice a week, with flights departing Toronto and Montreal, reports note.
But for those who do not find Peru an attractive destination, fret not: There will also be flights running from Montreal to Belize, Vancouver to Tepic, Riviera Nayarit, and Toronto to Puerto Escondido. These new flights will ultimately bring Air Canada up to 55 daily flights going to 52 different destinations in both the Caribbean and Latin America, thus ensuring passengers will be able to escape the cold and snow, if only for a little while.
Using Air Canada’s Card
Meanwhile, a report suggests that turning to Air Canada’s membership rewards program, and its co-branded credit card, may be a good call for Americans as well. This may be the biggest surprise of all, but as it turns out, Air Canada is actually considered one of the most convenient ways for Americans to fly internationally. Its geographic location makes some flights shorter, and can offer “…streamlined customs clearance and baggage handling.”
But an unexpected benefit is the Aeroplan loyalty program, along with the aforementioned credit card. The Aeroplan program has partnership arrangements with 45 different airlines, which means users will be able to take advantage of that connection when traveling anywhere else.
Is Air Canada Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on TSE:AC stock based on 10 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 29.27% rally in its share price over the past year, the average TSE:AC price target of C$24.23 per share implies 10.01% upside potential.
