Air Canada (TSE:AC) had one of the worst track records for on-time arrivals among North American carriers in 2024.
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Air Canada and privately held WestJet Airlines, Canada’s other main carrier, ranked dead last among North American airlines when it came to getting passengers to their destinations on time. WestJet managed to get its customers to their intended destination at the right time only 70% of the time. Air Canada was second last among North American carriers with an on-time percentage of 71%.
In contrast, U.S. based carrier Delta Air Lines (DAL) had an on-time arrival record of 83%, while United Airlines (UAL) got its passengers to their destination on-time 80% of the time. American Airlines (AAL), which is the world’s biggest carrier, had an on-time arrivals record of 78% in 2024.
Poor Service and High Fees
The poor showing by Air Canada is nothing new. Canada’s flagship airline is routinely ranked as having the worst on-time arrivals in North America and many other parts of the world. Air Canada also earns consistently low marks for pricing and customer service.
In December, Air Canada announced plans to ban carry-on bags and impose a seat selection fee for its lowest-fare customers beginning in 2025. Starting January 3, Air Canada’s basic fare passengers on trips in North America and to Caribbean sun destinations will have to check duffel bags, rolling suitcases, and large backpacks for a fee — C$35 for the first item and C$50 for the second.
Air Canada’s stock has declined 54% since the Covid-19 pandemic struck in 2020.
Is AC Stock a Buy?
The stock of Air Canada currently has a consensus Strong Buy rating among 13 Wall Street analysts. That rating is based on 11 Buy and two Hold recommendations issued in the past three months. The average price target on AC stock of C$27.95 implies 25.98% upside from current levels.
