Air Canada to buy back up to 10 per cent of its outstanding shares

Discussion in 'Air Canada | Aeroplan' started by tcook052, Dec 7, 2011.  |  Print Topic

  1. tcook052
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    tcook052 Silver Member

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    http://www.thestar.com/business/art...k-up-to-10-per-cent-of-its-outstanding-shares

    MONTREAL—Air Canada announced plans Wednesday to buy back up to 10 per cent or 24.7 million of its outstanding shares over the coming year.

    The airline said the repurchase program for both its class A and B shares will start on Dec. 12 and end no later than Dec. 11, 2012.

    “The board of directors of Air Canada believes that the purchase by Air Canada of its shares represents an appropriate use of funds to increase shareholder value,” the company said in a statement.
    By buying back its shares, a company reduces its equity base, spreading profits over fewer shares. That increases its return on equity and earnings per share, two key ratios used to determine a company’s financial health and investment rating.

    Air Canada has not purchased any of its shares within the last 12 months.
     
  2. tomh009
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    tomh009 Gold Member

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    Given the low prices the shares are languishing at, this can make a lot of sense -- assuming that the company has the cash available. I have to assume that they have done those calculations before deciding on a share buyback!

    But being able to do this is certainly a pretty stark contrast to AA's entry into Chapter 11.
     
  3. global_happy_traveller
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    global_happy_traveller Silver Member

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    $1 or so a piece right now... Last year was $3+ (up $4) a piece
     

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