Air Canada announced on Thursday its decision to reduce several non-union management positions after conducting a thorough review. Christophe Hennebelle, the airline’s vice-president of corporate communications, stated that this move was necessary to optimize resources and processes to better support business operations and customers. The reduction will affect around 400 employees, which represents approximately one percent of Air Canada’s total workforce.
Regarding the job cuts, Air Canada simultaneously unveiled plans to expand services from Toronto’s Billy Bishop airport. This expansion includes the addition of 10 new daily flights to various U.S. destinations, such as New York, Boston, Chicago, and Washington, D.C., along with new flights to Ottawa and Montreal. These new routes signify a major development at Toronto Island, marking a significant escalation in competition with Porter Airlines, which already serves the same U.S. cities.
Notably, Air Canada is set to release its third-quarter results on November 5. In a preliminary estimate released earlier, the airline reported a two percent decrease in operating capacity compared to the previous year due to over 3,200 flight cancellations in August when unionized flight attendants went on strike. This strike had a considerable financial impact on the airline, amounting to an estimated $375 million in operating income.
Moreover, Air Canada and other airlines have been impacted by reduced travel to the U.S. as a result of President Donald Trump’s trade policies with Canada. Statistics from September show a significant decline in Canadian residents returning from the U.S. by air compared to the same period last year. This trend has prompted adjustments in flight schedules for U.S.-bound flights by various air carriers.