Quoted from Mad_Dog_Coin_Op:
It's a risk. A lot of the companies in that category just don't have the cash to survive. Profit margins are slim even in good times. The damage may already be done. Picking a future winner isn't that easy. Lots of things can happen when a company is beat down. Bankruptcy is the obvious one but there are other things just as painful. I held Fruit of the Loom when Warren Buffett bought it and cancelled the stock by paying down their debt. Guess what I got in that deal? if you guessed nothing you would be correct. In my opinion nearly all of these super depressed companies are not worth investing in long term. Short term - maybe. I think money is better invested in the winners. Winners make money and continue to grow (usually).
Personally, I believe the Canadian Government would never let Air Canada fail. It's the only national carrier in Canada. I could be naive in this statement. Now when AC merges with Air Transat in the fourth quarter it will give AC not only be the title of only "Canadian National Airline" but also the owner of Canada's biggest Holiday Travel Airline. They would have all bases covered.
Some of these companies have huge cash reserves but the real determining factor is the time it will take for people to hop on the band wagon again and travel. News of a working vaccine would be the determining factor here and the amount of doses required to protect the population. I hoping we receive news before the end of November on that front.