Shares in Air Canada have quadrupled nearing C$4.50 in trading late last week after weeks of trading under a dollar with investors worried by high debt and its pension liability. However since the carrier has succeeded in refinancing around $1.4 billion in long-term notes enabling Air Canada to finance its 787 deliveries, investors are becoming more bullish. Moreover Air Canada has reached an agreement in March with the government over its pension liability, where it has until 2020 to fully fund its pension. Cost-cutting measures have also reassured investors as cost per available seat mile are forecasted to fall 3.5% for the third quarter, enabling it to compete more effectively with rivals.
Air Canada shares soar
