Air Canada Launches Toronto-Shanghai Route, Stock Holds at C$21.41

Air Canada operated its first scheduled flight from Toronto to Shanghai on June 3, 2026, restarting a route suspended since 2020. The ultra-long-haul service runs four times weekly year-round with a maximum flight time of 16 hours westbound. This expansion signals the airline’s strategy to rebuild Asian connectivity and compete for premium international traffic.

Route Details and Schedule

Flight AC27 departs Toronto Pearson on Mondays, Wednesdays, Fridays, and Sundays, while AC28 operates on Mondays, Tuesdays, Thursdays, and Saturdays. The inaugural flight on June 3 completed the journey in 14.5 hours, below the planned maximum of 16 hours. Air Canada last served this route in 2020 before the pandemic suspension.

New Aircraft Powers Long-Distance Service

Air Canada deployed the Airbus A321XLR for this route, a new aircraft designed for extended range flights. The plane features improved cabin comfort, including extra legroom and free Wi-Fi for Aeroplan members. The aircraft eliminates floor obstructions that typically reduce legroom on long-haul flights.

Strategic Expansion in Asian Markets

Canada’s Minister of International Trade welcomed the route restart, stating it strengthens global competitiveness and market access for Canadian businesses. Air Canada announced this expansion last September as part of a broader network strategy. Passengers can book flights with Aeroplan points or cash fares. The route adds to Air Canada’s existing Asian network serving Tokyo and other regional hubs.

Stock Performance and Outlook

AC.TO trades at C$21.41, up 0.37% on the day and 13.88% over the past month. Meyka rates the stock B with a neutral recommendation, citing strong ROE performance offset by weak debt metrics. The 12-month price forecast stands at C$18.68, suggesting limited upside from current levels. With a PE ratio of 8.85 and earnings per share of C$2.42, the stock remains undervalued on traditional metrics.

Final Thoughts

Air Canada’s Toronto-Shanghai route restart demonstrates network recovery and positions the airline for Asian market growth. With Meyka rating AC.TO a B and forecasting C$18.68 in 12 months, the stock trades near fair value despite the strategic expansion.

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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.