Air Canada (TSX:AC) Moat Score: 4/10 (As of Jun. 29, 2026)


TSX:AC Air Canada TSX:AC
86 GF Score
Price C$24.67
GF Value C$24.10
Valuation Fairly Valued
! 5 Warning Signs
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What is Air Canada Moat Score?

Air Canada TSX:AC +0.65% 86 Moat Score is 4 as of Jun. 29, 2026. GuruFocus rates TSX:AC with a GF Score™ of 86/100 and a GF Value™ of C$24.10 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,057 Transportation companies, Air Canada ranks better than 87.98% on this metric.

Air Canada has the Moat Score of 4, which implies that the company might have Narrow Moat - Discernible but modest moat.

Air Canada has Narrow Moat: Air Canada has a modest moat due to its established brand and network in the Canadian market. However, the airline industry is highly competitive with low switching costs, and the company lacks significant regulatory barriers or unique intellectual property.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Air Canada might have Narrow Moat - Discernible but modest moat.

Air Canada  (TSX:AC) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Air Canada Moat Score Related Terms

TSX:AC vs DAL, UAL, LUV: Moat Score Comparison

For the Airlines subindustry, Air Canada's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Air Canada Moat Score vs Transportation Industry

For the Transportation industry and Industrials sector, Air Canada's Moat Score distribution charts can be found below:

* The bar in red indicates where Air Canada's Moat Score falls into.


TSX:AC
86GF Score
Air Canada TSX:AC
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 4 mean?
Air Canada (TSX:AC) has a Moat Score of 4 as of Jun. 29, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Air Canada ranks #127 out of 1057 companies in the Transportation industry, placing it in the top 12%.
Is Air Canada's Moat Score too high?
Air Canada's current Moat Score is 4. Based on the distribution chart, Air Canada ranks #127 out of 1057 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Air Canada has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Air Canada's Moat Score compare to DAL and UAL?
According to the Transportation industry distribution chart, Air Canada ranks #127 out of 1057 companies for Moat Score. This places Air Canada in the top 12% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Transportation company?
A good Moat Score depends on the Transportation industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Air Canada's current Moat Score is 4. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Canada stock overvalued right now?
Based on GuruFocus' analysis, Air Canada (TSX:AC) is currently considered Fairly Valued. The stock's GF Value™ is C$24.10, compared to a current price of C$24.67 — trading 2.4% above its estimated fair value. The current Moat Score is 4. Air Canada's overall GF Score™ is 86/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Air Canada (TSX:AC), the current Moat Score is 4 as of Jun. 29, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Air Canada (TSX:AC) Overvalued in 2026?

Based on GuruFocus' analysis, Air Canada stock appears to be overvalued. The current stock price of C$24.67 is trading 2.4% above its estimated GF Value™ of C$24.10. GuruFocus considers Air Canada to be Fairly Valued.

Key valuation signals for TSX:AC:

  • Moat Score: 4
  • GF Value™: C$24.10 vs. price of C$24.67 (2.4% above fair value)
  • GF Score™: 86/100 with 5 warning signs

No single metric tells the full story. See the TSX:AC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Air Canada Business Description

Address 7373 Cote Vertu Boulevard West, Air Canada Centre, Saint-Laurent, Montreal, QC, CAN, H4S 1Z3
Air Canada is Canada's largest airline, serving nearly 50 million passengers each year, together with its low-cost subbrand, Rouge, and contracts for regional connection flights into its network. Air Canada is a sixth-freedom airline, which flies many passengers on long-haul trips to and from the US with a layover in Canada.
86GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

C$24.67
Price
C$24.10
GF Value