Air Canada's operating revenues declined nearly 89 percent
year over year to $527 million Canadian in the second quarter as the carrier
reported only 4 percent of total passengers compared with the second quarter of
2019.
"As with many other major airlines worldwide, Air
Canada’s second quarter results confirm the devastating and unprecedented
effects of the Covid-19 pandemic and government-imposed travel and border
restrictions and quarantine requirements," according to Air Canada
president and CEO Calin Rovinescu. "Canada’s federal and inter-provincial
restrictions have been among the most severe in the world, effectively shutting
down most commercial aviation in our country."
Capacity in the second quarter was down 92 percent year over
year. In the third quarter, Air Canada projects capacity will be down 80
percent year over year, a bigger decrease than its earlier projection of 75
percent due to extended travel restrictions in Canada.
Air Canada so far has suspended
service indefinitely on 30 domestic regional routes, closed eight stations
at regional Canadian airports and has cut half of its workforce, about 20,000
employees, through layoffs, voluntary leaves and early retirement packages. The
carrier also is retiring 79 older aircraft from its fleet.
Air Canada reported a net loss of $1.75 billion Canadian for
the quarter, compared with a net income of $343 million Canadian in the second
quarter of 2019.
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