Unsurprisingly, the securities of Montreal’s two major airlines plunged on the Toronto Stock Exchange yesterday, reflecting investor uncertainty over the latest measures announced by Ottawa to deter Canadians from traveling.
At market close yesterday, Air Canada stock had retreated 4.80% on the Toronto Stock Exchange. After hitting a low of $ 19.37 shortly before 2 p.m., its stock rallied to close at $ 20.02.
The title of Transat AT, a company which includes Air Transat, has of course also suffered from the suspension of flights to Mexico and the West Indies, and the announcement of the implementation of new quarantine measures for all trips considered non-essential. .
Its stock fell a total of 2.97% during the day yesterday, to end the session at $ 4.58. That’s almost $ 1.50 below its low ($ 6.01) in mid-March 2020.
Beyond these recent stock market downturns, it is the rapid “disintegration of the country’s air transport ecosystem” which is of greater concern to industry specialist Mehran Ebrahimi.
“The latest tightening for health reasons is undoubtedly to be welcomed,” he said. But by attacking the virus in this way, Ottawa is creating a whole new one whose importance is poorly understood. “
Transat in danger
According to Mr. Ebrahimi, for example, stopping everything – overnight – as Transat chose yesterday, can have serious consequences.
“Because it is not because the suspension of its activities is presented as temporary that the resumption will be easy. “
The UQAM professor is also worried about the survival of Transat, a tour operator, he says, among “the best on the planet”.
“There will of course be life after the pandemic. But when it comes out, will we still be at the forefront of the industry as we once were? Asks Mr. Ebrahimi.