Air Canada (TSX:AC) is cutting more routes in Atlantic Canada.
The country’s flagship airline said that, starting in the New Year, it will suspend all flights in Sydney, Nova Scotia; Saint John, New Brunswick and Deer Lake, Newfoundland. Air Canada will also temporarily halt flights in Charlottetown, Prince Edward Island; Fredericton, New Brunswick and Halifax, Nova Scotia.
The air carrier said its decision "was not taken lightly" and reflects its inability to operate in a challenging environment without financial support from government. In June, Air Canada suspended operations on 11 routes in Atlantic Canada due to the ongoing impact of the Covid-19 pandemic on its operations.
In October, WestJet Airlines (TSX:WJA), Canada’s other major airline, said it was suspending 80% of its Atlantic Canada capacity. Airlines have been cutting service as passenger demand has dwindled, prompting Air Canada to convert several planes to carry freight.
The airline industry has been calling for federal government support for more than six months. Officials in Ottawa announced last week support for sectors that have been hit hard by the pandemic, including airports and hotels, but didn't provide specific aid to airlines.
In addition to airlines, airports across Canada have made drastic cuts to their operating expenses as the lack of revenue from fees forces them to reduce costs.
