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Air Canada reports losses for Q1

In a press release, Canadian airliner Air Canada<.> announced recently that it recorded losses of some…

In a press release, Canadian airliner Air Canada<.> announced recently that it recorded losses of some CDN $168 million (US $110 million) for the first quarter of 2001, and blamed a weaker economy and a reduction in business on the decline.



The company lost US $22 million in the comparable period last year. The company attributed the losses to a weaker economy, reduced high-yield business travel, and increased low-fare domestic competition, higher salaries, wages, benefits, and higher fuel expenses. Air Canada also underlined that six of the largest US-based air carriers are also facing similar problems, and have so far reported combined losses of over US $780 million in the same period. Presently the Canadian air carrier is in the process of an eight- percent work force reduction, and has thus eliminated 3,500 jobs through a voluntary separation package and other measures.



Already at least 1,350 employees have left and the rest are scheduled to be

gone by the end of 2001. In 2000, Air Canada took over rival Canadian

Airlines and passenger revenue rose by at least US $400 million, or 45

percent, in the first quarter.

Theodore Koumelis
Co-Founder & Managing Director - Travel Media Applications | Website

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

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