April 23, 2019 / 1:14 PM / 7 months 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)

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