Air Canada has been able to cut down on costs considerably over the past year which has caused their stock price to soar. Not only that but the company has also been able to fill their airplane seats by at least 86%. And putting the two together has caused the share price of the company to increase by a whopping 50% since last August. Mr. Doerksen, a National Bank Financial analyst, has said ” The company’s cost performance is outperforming expectations.” His statement shows that many experts are quite surprised at how Air Canada has been able to bounce back. I think these decisions and outcomes will really benefit the company in the future by not only improving their profits but also to help finance the new aircraft in the coming years.
I think that this story fits well with what we have been covering in class so far, since it showcases the benefits of cutting costs and maximizing profits. I understand that most of the work to cut down costs would be carried out by the Accounting team and they would’ve used tools such as financial statements to make these decisions.
Read the full article here:
http://business.financialpost.com/2013/10/04/air-canada-continues-to-soar/