Another day brings more pain for Canada’s battered airline industry.
Air Canada (TSX:AC), the country’s biggest carrier, is laying off another 1,500 workers because of new travel restrictions and a dramatic reduction in demand for flying.
The latest cuts come on the heels of a decision last week to temporarily shut down all Air Canada Rouge flights, which resulted in the loss of 80 jobs. At least 900 of the latest job cuts will come from unionized workers at the airline.
Air Canada also announced that it is shutting down service on 17 more routes starting next week, including Toronto to Fort Myers, Florida, Toronto to Washington, D.C., Montreal to Boston, Vancouver to Seattle, Toronto to Hong Kong and Toronto to Dublin, Ireland, among others.
The newest job cuts mean that Air Canada has now reduced its workforce by half, cutting it from roughly 40,000 people before the pandemic to about 20,000 today. Rival airline WestJet has cut even deeper, from 14,000 workers before the pandemic to only 3,500 employees today.
Analysts say Air Canada pulling out of those routes won't do much to limit travel because foreign airlines will likely maintain their service from Canada to foreign destinations.
