- Air Canada has said that it plans to temporarily lay off about 1,500 of its unionized workers and an undisclosed number of management-level employees.
- Along with the downsizing, the air carrier will be temporarily suspending service on 17 international routes.
- As Air Canada announced the downsizing and route cuts on Tuesday, its stocks sank by 0.69 per cent to close at C$ 21.5.
Following Canada’s decision to tighten its restrictions around international travel amid rising COVID-19 infections, national carrier Air Canada (TSX:AC) announced more layoffs and route cuts on Tuesday, February 9.
Air Canada, which has sharply reduced its workforce and routes amid the pandemic, said that it plans to temporarily lay off about 1,500 of its unionized workers and an undisclosed number of management-level employees.
This latest layoff announcement comes after almost 80 employees were furloughed earlier this month, following the suspension of Air Canada Rouge operations.
Along with the downsizing, the air carrier will be temporarily suspending service on 17 international routes. The earliest suspension will come into effect on Sunday, February 14, on a flight to the US, while the practice is expected to last till at least April 30.
How Are Air Canada (TSX:AC) Stocks Performing?
As Air Canada announced the downsizing and route cuts on Tuesday, its stocks sank by 0.69 per cent to close at C$ 21.5. The airline shares currently reflect a decline of about six per cent year-to-date and.
Over the past year, Air Canada stocks have deflated by around 53 per cent as the coronavirus ate through the aviation industry worldwide. In the thick of the March lows last year, the airline scrips plummeted by over 73 per cent in the span of a month (between February and March 19) to its lowest point of C$ 12.1 in 2020.
In February 2021, however, Air Canada stocks reflect a rebound over seven per cent month-to-date (MTD).
©Kalkine Group 2021
Air Canada Latest Financials
Air Canada, which is set to release its financials for the last quarter of 2020 on Friday, February 12, recorded a whopping 88 per cent year-over-year (YoY) drop in its total revenues for Q3 2020.
Its passengers strength for the third quarter ending 30 September 2020 amounted to C$ 757 million, having plunged by 86 per cent YoY.
As the federal government gets stricter with keeping as much of the disease behind its borders as possible, COVID-related measures are being applied to road travels as well. Showing a negative COVID test result was applied to only flight passengers until recently, Prime Minister Justin Trudeau announced this week that from Monday, February 15, onwards, anyone coming into the country by a land border will also have to prove being COVID-free.