Air Canada Shares Up on View that Costs Will Fall

Air Canada shares surged last week, riding an airline industry wave and rising 5.7 percent on expectations that Canada’s biggest carrier will enjoy lower costs in the second half of the year.

Air Canada’s class A shares rose 79 Canadian cents to CAD$14.59 on the Toronto Stock Exchange. Nearly a million shares changed hands, almost five times the three month average.

It was the third straight day of gains for Air Canada, and comes amid expectations that its expenses are moderating.

The rising share price also reflected strengthening airline stocks in the United States and elsewhere.