Air Canada reduces first-quarter capacity by 25 per cent, cuts 1,700 jobs
Published Wednesday, January 13, 2021 10:37AM EST Last Updated Wednesday, January 13, 2021 11:44AM EST
MONTREAL -- Air Canada says it will cut 1,700 jobs as it scales down operations in response to a new wave of lockdown restrictions.
The 25 per cent reduction in service for the first quarter of 2021 will also affect 200 employees at Air Canada's Express carriers, the company said Wednesday morning.
"We regret the impact these difficult decisions will have on our employees who have worked very hard during the pandemic looking after our customers, as well as on the affected communities," said Lucie Guillemette, Air Canada's executive vice president and chief commercial officer, in a statement.
Guillemette said increased travel restrictions by federal and provincial governments have had an immediate impact on the company's bookings.
With the reduction, Air Canada's capacity in the first quarter of 2021 will be about 20 per cent of its capacity during the first quarter of 2019, the company says.
Air Canada notified airports in Atlantic Canada this week that it would cut additional routes in the region, suspending all flights in Gander, N.L., Goose Bay, N.L., and Fredericton, N.B., until further notice as of Jan. 23.
Air Canada is contacting affected customers to offer them options such as refunds or alternative travel arrangements, the company said.
The cuts come just days after Air Canada's latest round of service reductions in Atlantic Canada went into effect on Jan. 11.
Monette Pasher, the executive director of the Atlantic Canada Airports Association, said in a statement that the repercussions of the service cuts would be felt for years to come in communities in Atlantic Canada.
"We cannot just flip a switch to turn air service back on when we get to the other side of this pandemic," Pasher said. "We are going to have a long hard road ahead of us to rebuild air access for our region."
- This report by The Canadian Press was first published Jan. 13, 2021.