## Should You Invest in Air Canada Stock?
Air Canada (TSX: AC) is Canada’s largest airline and one of the largest airlines in the world. The company has a strong track record of profitability and has been able to maintain its position as a leader in the Canadian airline industry. However, the airline industry is cyclical and is subject to a number of factors that can impact profitability, including economic conditions, competition, and fuel prices.
### Factors to Consider Before Investing in Air Canada Stock
**Positive Factors**
* **Strong financial performance:** Air Canada has a strong track record of profitability and has been able to maintain its position as a leader in the Canadian airline industry. The company has a strong balance sheet and has been able to generate consistent cash flow.
* **Dominant market position:** Air Canada is the largest airline in Canada and has a strong market share in both the domestic and international markets. The company has a strong network of routes and is able to offer a wide range of services to its customers.
* **Government support:** Air Canada is a vital part of the Canadian transportation system and has received support from the government in the past. The government has provided financial assistance to the airline during times of economic downturn and has helped to protect the airline’s market share.
**Negative Factors**
* **Cyclical industry:** The airline industry is cyclical and is subject to a number of factors that can impact profitability, including economic conditions, competition, and fuel prices. Air Canada’s profitability can be negatively impacted by economic downturns, which can lead to a decrease in demand for air travel.
* **Competition:** Air Canada faces competition from a number of other airlines, both domestic and international. The company must compete on price, service, and route network in order to attract and retain customers.
* **Fuel prices:** Fuel is a major expense for airlines and can have a significant impact on profitability. Air Canada’s profitability can be negatively impacted by increases in fuel prices.
### Risks of Investing in Air Canada Stock
* **Economic downturn:** An economic downturn can lead to a decrease in demand for air travel, which can negatively impact Air Canada’s profitability.
* **Competition:** Air Canada faces competition from a number of other airlines, both domestic and international. The company must compete on price, service, and route network in order to attract and retain customers.
* **Fuel prices:** Fuel is a major expense for airlines and can have a significant impact on profitability. Air Canada’s profitability can be negatively impacted by increases in fuel prices.
### Conclusion
Air Canada is a strong company with a long track record of profitability. However, the airline industry is cyclical and is subject to a number of factors that can impact profitability, including economic conditions, competition, and fuel prices. Investors should carefully consider the risks before investing in Air Canada stock.
### Analyst Recommendations
The following are analyst recommendations for Air Canada stock:
* **TD Securities:** Buy (target price: $32.00)
* **RBC Capital Markets:** Buy (target price: $35.00)
* **CIBC World Markets:** Neutral (target price: $28.00)
* **Scotiabank:** Hold (target price: $26.00)
* **National Bank Financial:** Underperform (target price: $24.00)
### Technical Analysis
The technical analysis of Air Canada stock indicates that the stock is in a downtrend. The stock has been trading below its 50-day and 200-day moving averages and is making lower lows and lower highs. The stock is also below its support level of $26.00.
### Bottom Line
Air Canada is a strong company with a long track record of profitability. However, the airline industry is cyclical and is subject to a number of factors that can impact profitability, including economic conditions, competition, and fuel prices. Investors should carefully consider the risks before investing in Air Canada stock.
### Additional Information
* [Air Canada website](https://www.aircanada.com/)
* [Air Canada stock price](https://finance.yahoo.com/quote/AC.TO/)
* [Air Canada analyst recommendations](https://www.tipranks.com/stocks/ac/analyst-recommendations)
* [Air Canada technical analysis](https://www.tradingview.com/symbols/TSX-AC/)