April 23, 2019 / 1:14 PM / a year ago

BUZZ- CIBC sees silver lining to Canada's airline sector despite headwinds

** CIBC says while 2019 feels like a “lost year” for Canadian airlines given the 737 MAX groundings, it sees a silver lining

** Says it expects Bombardier Inc to reiterate its 2019/2020 guidance, which it believes will result in a positive reaction in co’s share price

** Brokerage says it is below consensus on Air Canada and Chorus Aviation

** Estimates impact of the MAX grounding to be a $226 mln and an $80 mln headwind to Air Canada’s and WestJet Airlines’ respective operating earnings on a full-year basis

** The 737 MAX planes were grounded worldwide in March in the wake of two fatal plane crashes

** Brokerage says despite above headwinds, the airline sector continues to generate good earnings and free cash flow; says demand remains healthy for Canadian airlines

** Bombardier shares have risen ~ 35% YTD, Air Canada up 24 % and WestJet up 7% (Reporting by Shradha Singh in Bengaluru)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below