AC Implements Capacity and Workforce Reductions

Air Canada is reducing its first quarter system capacity by an additional 25% as it adjusts its network under its COVID-19 Mitigation and Recovery Plan.

The system-wide changes, will result in a workforce reduction of approximately 1,700 employees, in addition to the over 200 impacted employees at its Express carriers.

The carrier said that it is working with its unions on mitigation programs.

Lucie Guillemette, executive vice president and chief commercial officer at Air Canada, said that: “Since the implementation by the Federal and Provincial Governments of these increased travel restrictions and other measures, in addition to the existing quarantine requirements, we have seen an immediate impact to our close-in bookings and have made the difficult but necessary decision to further adjust our schedule and rationalize our transborder, Caribbean and domestic routes to better reflect expected demand and to reduce cash burn.”

Guillemette said: “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.”

And she continued: “While this is not the news we were hoping to announce this early into the year, we are nonetheless encouraged that Health Canada has already approved two vaccines and that the Government of Canada expects the vast majority of eligible Canadians to be vaccinated by September. We look forward to seeing our business start to return to normal and to bringing back some of our more than 20,000 employees currently on furlough and layoff.”

Air Canada will be reducing approximately 25% of its planned capacity for the balance of the first quarter of 2021. With this reduction, capacity in the first quarter of 2021 will be about 20% of what Air Canada operated in the first quarter of 2019.

Air Canada will continue to evaluate and adjust its route network as required in response to the trajectory of the pandemic, government-imposed travel restrictions and quarantines, and to market and regulatory conditions.

Affected customers on all routes will be contacted by Air Canada and offered options, including refunds for eligible customers and alternative routings where available.