1026 GMT - Air Canada's margins are likely going to be affected by the rising cost of fuel, says Scotiabank analyst Konark Gupta, who downgrades the stock rating to sector perform from sector outperform. The pressure could be significant. "The recent surge in fuel price... could negatively impact margins and maintain pressure on the stock at least in the short term," the analyst says in a report. Depending on the trajectory of oil, which yesterday surged passed $100 a barrel before settling down to below $90, "there is potential for management to reduce or even suspend guidance." What's more, Gupta says "there could be potential demand destruction on top of cost headwinds." Scotiabank lowers the price target on the stock to C$21 from C$27. (adriano.marchese@wsj.com)
(END) Dow Jones Newswires
March 10, 2026 06:26 ET (10:26 GMT)
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