Air Canada is to cut its capacity by 7% in the fourth quarter of this year and slash as many as 2,000 jobs. Like other airlines, Air Canada is facing soaring fuel costs as oil prices rise.
CEO Montie Brewer said the measures were necessary to remain competitive. 'Air Canada, like most global airlines, needs to adapt its business and reduce flying that has become unprofitable in the current fuel environment, he added.
Mr Brewer warned that there would be further cuts in capacity if fuel prices remained at current levels. The airline noted that fuel prices had quadrupled since 2004, saying that every $1 a barrel rise in the oil prices added around $26m a year to fuel costs.
