AC.TO Stock Today: February 23 – Jalisco Violence Halts Puerto Vallarta Flights
Air Canada stock is in focus on February 23 after the airline paused Puerto Vallarta flights amid Jalisco violence tied to reports about CJNG leader “El Mencho.” For Canadian travelers, a Mexico travel advisory shift could sway bookings. Shares of Air Canada (symbol AC.TO) trade near C$20.35, down 3.05% today, within a day range of C$20.31 to C$20.94. The 52-week range is C$12.69 to C$23.72. Volume is 1.60 million versus a 2.34 million average, signaling event-driven risk and tighter liquidity today.
Safety shock: What happened and immediate airline impact
Canadian media report unrest in Jalisco after the reported death of a cartel leader, prompting flight suspensions and diversions to Puerto Vallarta. See coverage from La Presse source and Radio-Canada source. Air Canada paused operations, and other Canadian carriers adjusted schedules. Disruptions raise near-term risks to load factors, refunds, and crew positioning while customer safety and rebooking remain the priority.
For Mexico leisure routes, short interruptions can weigh on unit revenue and add handling costs. Air Canada stock reflects uncertainty over flight resumptions, rebooking uptake, and the path of transborder demand. Investors should track carrier advisories, airport security updates, and any Mexico travel advisory changes for Canadian travelers. The pace of reinstating Puerto Vallarta flights will shape near-term revenue visibility and cost control.
Stock reaction, technicals, and valuation context
Air Canada stock trades at C$20.35, down 3.05% after opening at C$20.85. RSI sits at 61.06, showing positive momentum, while ADX at 23.12 signals a moderate trend. ATR of 0.66 implies typical daily swings near 3%. Bollinger levels are Upper C$21.69, Middle C$20.07, Lower C$18.44. Watch C$20.07–C$20.31 as near support and C$20.94–C$21.69 as resistance into any headline shifts.
On valuation, PE is 11.31 with EPS at C$1.86 and price-to-sales near 0.28. EV/EBITDA is about 4.61. Liquidity and leverage are the key watchpoints: current ratio 0.56, debt-to-equity 4.47, interest coverage 1.51. Free cash flow yield is about 12%. Air Canada stock sits above its 50-day average of C$19.43 and the 200-day at C$19.12, offering cushion if disruption stays brief.
What to watch next for Canadian investors
Track airline bulletins on Puerto Vallarta flights, rebooking volumes, and any schedule rebuild. Monitor Mexico travel advisory updates for Canadians and airport security assessments. Management’s commentary on transborder demand and cost impact will be crucial ahead of the next earnings date on May 6, 2026. Stable operations and clear forward guidance can help reduce event-driven volatility in Air Canada stock.
Revenue per share TTM is 75.58, but net margin is only 2.88%, so shocks can compress earnings. Balance sheet signals call for caution if disruptions extend. Investors should set alerts around Bollinger bands and ATR to manage risk, and watch newsflow on Jalisco violence. Swift, safe service restoration would be constructive for Air Canada stock sentiment.
Final Thoughts
Safety comes first, and the pause of Puerto Vallarta flights reflects that. For investors, today’s move in Air Canada stock underscores event risk tied to Jalisco violence and any Mexico travel advisory shift. Technically, C$20.07 to C$20.31 is near-term support, while C$20.94 to C$21.69 is resistance. Fundamentally, valuation is reasonable, but liquidity and leverage mean extended disruptions matter. Our practical playbook: follow airline advisories, track rebooking data, and watch guidance on transborder demand into the May 6 earnings call. If flights resume smoothly and demand holds, the overhang can fade; if not, expect higher costs, softer loads, and more volatility. This article is informational, not investment advice.
FAQs
Is Air Canada flying to Puerto Vallarta now?
Air Canada has temporarily paused Puerto Vallarta flights after reports of Jalisco violence. Some Canadian carriers also adjusted schedules. Travelers should check airline notifications, airport updates, and insurance coverage. Rebooking or refunds may be available under standard policies. Conditions can change quickly, so monitor official advisories and carrier channels closely.
How does a Mexico travel advisory affect Air Canada stock?
Advisory changes can slow bookings, raise cancellations, and shift capacity, pressuring near-term revenue. For airlines with thin margins, even brief shocks can move the tape. If advisories ease and operations normalize, sentiment often improves. Persistent warnings may keep yields and loads under pressure, weighing on Air Canada stock performance.
What technical levels matter today for AC.TO?
Key markers include the Bollinger Middle Band near C$20.07 and today’s low around C$20.31 as support. Resistance sits near C$20.94 and the Upper Band at C$21.69. ATR of 0.66 frames expected daily range. RSI at 61 suggests momentum remains positive unless support breaks on heavier volume.
Is Air Canada stock attractive after the drop?
Valuation is moderate at about 11.3x EPS and roughly 4.6x EV/EBITDA. Supportive, but risks include leverage and low liquidity ratios. A model-based grade shows B+ with a BUY suggestion, yet event risk is elevated. Consider position sizing and stop levels while awaiting clarity on flight resumptions and demand.
What catalysts could improve outlook in the near term?
Clear safety improvements in Jalisco, rapid flight resumptions, steady rebooking, and firm guidance on transborder demand would help. Technical confirmation above C$20.94–C$21.69 can also aid sentiment. Conversely, prolonged disruptions or tougher advisories could increase costs and pressure earnings in the short run.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.