Air Canada (TSX:AC) has issued layoff notices to more than 5,000 flight attendants as the country's largest airline cuts routes and grounds aircraft due to the coronavirus pandemic.
Air Canada said it is laying off about 3,600 mainline employees as well as all of Air Canada Rouge's 1,549 flight attendants. The layoffs impact 60% of flight attendants at the two segments of the airline.
Air Canada said the layoffs are “temporary” and employees will be returned to active duty status when the airline is able to ramp up its network schedule again and begin flying to overseas destinations. The Montreal-based airline announced earlier in the week that it is suspending the majority of its international and U.S. flights.
Air Canada’s stock has plummeted 76% in two months, dropping steeply in the past two weeks as borders close and flight demand plunges. Air Canada’s share price closed trading on Wednesday at $12.15 per share, down from a peak of more than $50 a share reached in January of this year.
Shares in the Maple Leaf Airline got lift of $1.35, or 11.1%, to $13.50.
