Air Canada Drops 30 Domestic Routes Over Coronavirus Toll on Travel Demand

Air Canada said on Tuesday it would suspend flights on 30 domestic routes hit by persistent weak travel demand due to the COVID-19 pandemic.

The carrier forecast third-quarter capacity would decline at least 75% from a year ago and warned that travel restrictions and border closures were dimming prospects for a near-to-mid- term recovery.

The company said it has reduced its workforce by about 20,000 employees, which represents more than 50% of its staff, and has permanently removed 79 aircraft from its fleet as it struggles with the fallout from the coronavirus outbreak.

Air Canada added that it was closing eight stations at regional airports in Canada.

As part of a cost reduction and capital deferral program, Air Canada said it has identified around $1.1 billion in savings to date.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Amy Caren Daniel)

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