The Motley Fool
Published Jun 10, 2021 15:15
Updated Jun 10, 2021 15:45
Air Canada (TSX:AC): Claim Your Ticket Refund Before June 12
Air Canada (TSX:AC) is giving cash refund for tickets on flights cancelled between February 1, 2020, and April 13, 2021. The last date to claim your refund is June 12. If you delay your refund request, you will either get a travel voucher or Aeroplan points with a 65% bonus. Air Canada is funding this cash refund from the $1.4 billion loans it received as a part of the bailout package. This loan is only intended for ticket refunds. If you do not claim the refund, that money will go to AC.
Who can claim a ticket refund from Air Canada? The big question is, who can claim the refund? Many people believe they are not eligible for a refund because they did not book the flight tickets directly from Air Canada’s website or they bought nonrefundable tickets. Those tickets are cheap, because the traveller bears the risk of flight cancellation or booking cancellation.
Now, read carefully. AC did say that it refunded money to those who purchased refundable tickets. But the above refund is from the taxpayer money, as the government doesn’t want travellers to bear the cost of the travel ban it imposed.
So, if your travel dates were from February 1, 2020, to April 13, 2021, you can claim a cash refund even under the following circumstances:
How to make money from refund money If you are claiming a refund, you can make money from Air Canada stock. If you look at the airline stock’s last year rally, it has surged 47%. The stock has another 30% upside, as the airline industry sees pent-up demand from leisure travellers. Prime Minister Justin Trudeau aims to make the vaccine available to every Canadian by September to create herd immunity. And then he can consider easing quarantine requirements by adopting scientific methods. If things go as planned, AC stock could surge to $40.
In dollar terms, a round trip from Ontario to Montreal would cost you between $450 and $500. Even if you receive a $400 refund and you invest it in AC stock, it can become $520 in the next 12 months, representing a 30% upside.
However, this recovery rally comes with a risk of a fallback from another wave of the pandemic. The nature of the COVID-19 virus is that it mutates the moment cases come down. So far, the mutations that researchers have discovered are not immune to the vaccine. The vaccine is preventing the virus from becoming deadly for those who are infected.
If there is a mutant virus that renders the vaccine ineffective, everything will return to square one. Lockdowns and travel bans will return. However, AC stock won’t dip to the March 2020 levels of $15 as it has learned to survive the pandemic conditions. It will dip. But this time, the support will be around $24. No stock is without risk, but AC has a 30% upside.
The post Air Canada The Motley Fool Canada .
Fool contributor Puja Tayal has no position in any of the stocks mentioned.
This Article Was First Published on The Motley Fool
Written By: The Motley Fool
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.