Hold Rating Reaffirmed on Balanced Risk-Reward as Air Canada Faces Post-Hedge Margin Pressure; Price Target Maintained at C$19

Jefferies analyst Sheila Kahyaoglu maintained a Hold rating on Air Canada today and set a price target of C$19.00.

Sheila Kahyaoglu has given his Hold rating due to a combination of factors that balance temporary earnings support against emerging risks. While near‑term results benefit from fuel hedges that significantly cushion second‑quarter profitability, the underlying revenue recovery from higher fuel costs appears weaker than that of U.S. peers, reflecting Air Canada’s specific customer mix, load factors, and Pacific exposure.

As these hedges begin to expire in the second half of the year, the company becomes more vulnerable to fuel price volatility just as planned capacity reductions are expected to push unit costs higher and compress margins. With 2026 adjusted earnings projected to decline meaningfully year over year and no change to the C$19 price target, the risk‑reward profile appears balanced, supporting a Hold rather than a more decisive Buy or Sell recommendation.

In another report released on April 22, Canaccord Genuity also reiterated a Hold rating on the stock with a C$21.00 price target.

Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ACDVF in relation to earlier this year.