Air Canada (TSX:AC) shares edged higher in Toronto on Friday, hovering close to their 52-week peak as trading volume remained well below average. The stock's movement came amid renewed speculation about the airline's CEO succession and ahead of second-quarter results.
At 13:12 EDT, Air Canada was trading at C$24.65, up 0.37% on the day, according to Google Finance. That placed the stock just 1.2% below its 52-week high of C$24.95. However, trading activity was notably light, with volume reaching only 244,840 shares, or roughly 8.4% of the 2.92 million share daily average.
The stock is currently trading above the average analyst target, suggesting limited near-term upside based on Wall Street expectations. A survey of nine analysts by MarketBeat gives the stock a consensus rating of "Hold," with five "Hold" and four "Buy" ratings. The average 12-month price target stands at C$23.73, which is 3.77% below the current price. Analyst targets range from a low of C$19.00 to a high of C$32.00.
Air Canada's share price has pushed toward the upper end of its recent range even as the company has yet to reinstate its full-year guidance or name a permanent CEO. The airline dropped its 2026 full-year outlook on April 30, citing reduced confidence in fuel price forecasts for the second half of the year. Management has maintained its second-quarter targets, including adjusted EBITDA of between C$575 million and C$725 million, capacity growth of 0.5% to 1%, and jet fuel costs of approximately C$1.28 per litre.
A Bloomberg report published Thursday identified Anko van der Werff, CEO of Scandinavian airline SAS, as the leading candidate to succeed Michael Rousseau as Air Canada's chief executive. The report suggested that a clear decision on succession could provide a short-term boost to the stock. Air Canada announced in March that Rousseau would step down by the end of the third quarter, and the board has been conducting a global search since January, with French language proficiency among the evaluation criteria.
Despite the positive stock movement, Air Canada underperformed the broader market on Friday. The S&P/TSX Composite Index rose 0.80% to 35,247.82 as of 13:25 EDT. Peer airline Transat A.T. (TSX:TRZ) also gained, rising 1.72%.
Trading conditions were influenced by the Canada Day holiday on July 1 and the U.S. Independence Day observance on July 3, which kept NYSE markets closed and contributed to the lighter-than-usual volume on the TSX. Special settlement rules were in effect for U.S. dollar trades.
Air Canada is scheduled to report its next quarterly earnings on August 5, 2026. Investors will be watching for updates on demand trends, fuel cost management, and any progress on the CEO search.
