New Boost for Air Canada: Pilots Approve New Contract

The stocks of Air Canada saw a significant increase of over four percent on Thursday. The reason for this is the agreement between the airline and its pilots on a new four-year collective agreement. This step was confirmed by the Air Line Pilots Association (ALPA), which represents more than 5,200 Air Canada pilots. Sixty-seven percent of the members approved the agreement, which came about after more than a year of negotiations and was finalized in September. The vote was not without reservations, especially newer pilots hesitated. Charlene Hudy, the head of Air Canada's pilots' union, announced her resignation in case of rejection. Nevertheless, she expressed satisfaction and stated that the agreement helps pilots offset losses from the past twenty years and create a solid foundation for further growth. Analysts believe that resolving the strike potential should have positive effects on Air Canada's future business figures. According to an analysis by TD Cowen, the company is considered significantly undervalued compared to its competitors. The agreement could therefore lead to renewed optimism among investors. Michael Rousseau, the CEO of Air Canada, emphasized the flexibility and growth opportunities that the new contract offers the airline. Air Canada's shares rose 4.5 percent on the Toronto Stock Exchange on Thursday.