Air Canada to cut up to 60% workforce due to COVID-19

An Air Canada Boeing 737 MAX 8 from San Francisco approaches for landing at Toronto Pearson International Airport over a parked Air Canada Boeing 737 MAX 8 aircraft in Toronto, Ontario, Canada, March 13, 2019. Credit: Reuters Photo

Air Canada said on Friday it has decided to reduce its workforce by up to 60% as the airline tries to save cash amid the COVID-19 pandemic and right size its operations to the level of traffic expected in the mid-to-longer term.

The airline was working with unions to implement these measures, it said in an emailed statement.

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The Canadian Union of Public Employees representing Air Canada flight attendants said the airline is set to ask employees to reduce their hours, go on leave for up to two years or resign with travel privileges, the Canadian Press reported.

The health crisis has brought a virtual halt in air travel, leading to an unprecedented number of flight cancellations globally and forcing airlines to book hefty losses.

The union was not immediately available for Reuters request for comment.