RBC Elements™: Q2/26 Flight Deck

Research evidence excerpt

RBC Elements™: Q2/26 Flight Deck

RBC Dominion Securities Inc.

James McGarragle, CFA, CPA

(Analyst)

(416) 842-7862,

james.mcgarragle@rbccm.com

Louis Derlis, CFA (Senior

Associate)

(416) 842-7876,

June 29, 2026 louis.derlis@rbccm.com

RBC Elements™: Q2/26 Flight DeckRESEARCH Q2 Airlines & Aerospace Preview

Our view: In this report, we provide updated estimates for AC and CHR and adjust target multiples higher

at AC, BBD, and EIF to reflect an evolving demand backdrop. For Q2, our Canadian Airlines Heatmap,

powered by RBC ElementsTM, presents strong signals across leading indicators. Travel indexes remain

solid signalling stable consumer travel demand, although Cdn. Airfare CPI turned negative, something

we will be keeping an eye on during the remainder of the year. Furthermore, fuel costs remain a key risk

but recent WTI prices (to the extent they are sustained) point to upside to AC consensus estimates inEQUITY our view. Additionally, we see geopolitical disruptions in the Middle East impacting near-term demand

for CAE's civil training solutions; however, this is reflected in the company's F27 guide and near-term

consensus estimates. In private aviation, bizjet activity remains a bright spot, with used inventory

trending lower, a positive demand signal into the back half of the year. Chorus remains our top idea,

representing a compelling value opportunity with management targeting $525MM in FCF through 2029

versus a ~$550MM market cap, offering in our view multiple paths to value creation and shareholder

returns.

Q2 estimate revisions

• AC: Q2E increased and above consensus; PT increased to $28 (from $22); maintain Outperform. Our

Q2 EBITDA moves to $688MM (from $653MM), above consensus of $661MM, driven by increased