The high price of oil claims more victims. 2,000 jobs will be cut across the board at Air Canada and some flights are being axed. The airline is struggling to remain a going concern while dealing with the record high cost of fuel.
Every $1 increase in the price of oil per barrel adds an estimated $26 million to Air Canada's annual fuel expense. Fuel is the carrier's single largest expense item, accounting for more than 30% of total operating expense.
Like many of its counterparts around the world, the airline is cutting back on flights, therefore needing fewer people. Air Canada plans to reduce domestic capacity by 2%, U.S. transborder capacity by 13% and international capacity by 7%. It will end Vancouver-Osaka service October 26th. No specific details of job cuts were released.
James Morton
1100 - 5255 Yonge Street
Toronto, Ontario
M2N 6P4
1 comment:
I'm afraid that this is just the beginning!!
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