When markets fall, panic often sets in. But while some investors rush to sell, others know that downturns are where fortunes are quietly built. Buying the dip is a strategy that takes confidence and patience. The best opportunities often come from companies with solid fundamentals that have simply been caught up in the wave. Three worth considering during a pullback are Air Canada (TSX:AC), Onex (TSX:ONEX), and Chorus Aviation (TSX:CHR). Each operates in sectors tied to broader economic cycles, but all have the potential to bounce back stronger when markets recover.
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Air Canada
Air Canada is one of the most recognizable names in Canadian business. As the country’s largest airline, it moves millions of passengers a year and plays a crucial role in both domestic and international travel. The last few years have been tough, and the airline industry has had to get creative to stay afloat. In the first quarter of 2025, Air Canada posted revenue of $5.2 billion. That’s a sign of stability, even as the company recorded an operating loss of $108 million.
One area that has concerned investors is the drop in passenger revenue. Year-over-year, revenue fell 3% to $4.3 billion. Transborder revenue dipped 5%, and international sales also declined. But despite these setbacks, Air Canada is far from sitting still. It recently launched a $150 million cost savings plan and bought back 35.8 million shares under a repurchase program. The airline also added $1 billion in advance ticket sales, pushing operating cash flow to $1.5 billion.
While higher fuel costs and geopolitical risks remain challenges, Air Canada is streamlining operations and expanding into more profitable routes. If you’re betting on a recovery in travel and tourism, it remains a top candidate to watch when markets dip.
Onex
Onex is a Toronto-based private equity and asset management firm. It doesn’t make headlines as often as airlines or tech stocks, but its reach is impressive. Onex owns stakes in companies across healthcare, financial services, and aviation.
In the first quarter of 2025, Onex reported net gains of $96 million from private equity and $11 million from its credit business. These gains reflect a 2% return, which is quite strong in a volatile market environment. The company also raised around $2.5 billion in new fee-generating capital, underscoring the trust that institutional investors place in its strategy.
One of the highlights was the sale of a 25% stake in WestJet. Onex originally bought WestJet in 2019 and has since turned it into one of the most efficient carriers in the country. By selling a minority stake at a premium, Onex realized gains while still maintaining a controlling position. What makes Onex particularly attractive during a market dip is its flexibility. It holds a diversified mix of businesses and has access to capital. That gives it room to move quickly and scoop up undervalued assets when markets fall.
Chorus
Chorus Aviation rounds out the trio with a focus on regional aviation. It may not be as large as Air Canada, but Chorus plays a vital role in Canadian travel, particularly for smaller communities. The company provides regional air service through Jazz Aviation and also runs an aircraft leasing business.
In Q1 2025, Chorus posted net income of $18.9 million, up from $12.3 million the year before. Adjusted earnings available to shareholders rose to $15.4 million, or $0.57 per share, compared to $0.13 the previous year.
The company has benefited from a rebound in parts sales and contract flying. Its maintenance, repair, and overhaul business also saw a boost. On top of that, Chorus announced a $25 million share buyback, a sign that it believes its stock is undervalued. The company’s lease portfolio remains strong, and it continues to generate steady income even as the broader economy slows.
Bottom line
Market pullbacks are uncomfortable, but they also open the door to long-term gains. All three are down from highs, but each has the tools to weather uncertainty and come out stronger. When markets dip, investors with a long view and a cool head can turn that fear into opportunity.
