Canada’s largest airline is suspending more operations and laying off staff.
Montreal-based Air Canada (TSX:AC) says it will pause all operations of its Rouge operation indefinitely and furlough 80 employees starting on February 8.
The latest announcement from Air Canada comes as Canadian airlines suspend all flights to Mexico and the Caribbean at the request of the federal government. Air Canada said the majority of its flights to Mexico were operated by Rouge.
Air Canada announced 1,700 layoffs in January when the carrier saw a drop in bookings because of a new requirement that travelers entering Canada show proof of a negative COVID-19 test.
In addition to the most recent flight suspensions, Prime Minister Justin Trudeau announced a series of additional travel restrictions on January 29, including a requirement that entrants to Canada quarantine in hotels at their own expense.
Air Canada says Rouge "remains a part of Air Canada's overall business strategy" but would not say when the indefinite suspension would end.
