MONTREAL – Air Canada is cutting 1,700 jobs and scaling down its operations as the cumulative effects of lockdown restrictions, slumping travel demand and new COVID-19 testing rules take their toll on the airline industry.
The 25 per cent reduction in service for the first quarter of 2021 will also affect 200 employees at Air Canada’s Express carriers, the company said Wednesday morning.
“We regret the impact these difficult decisions will have on our employees who have worked very hard during the pandemic looking after our customers, as well as on the affected communities,” said Lucie Guillemette, Air Canada’s executive vice president and chief commercial officer, in a statement.
Guillemette said increased travel restrictions by federal and provincial governments have had an immediate impact on the company’s bookings.
The move comes five days after rival WestJet Airlines announced that up to 1,000 employees will be furloughed, temporarily laid off, put on unpaid leave or have their hours cut, and that it will chop about 30 per cent of its capacity for February and March and pull 160 domestic departures from its schedule.
WestJet CEO Ed Sims laid the blame squarely on “incoherent” federal government policy with regard to the new COVID-19 testing requirements for passengers returning to Canada.
Unifor, the union which represents customer sales and service agents and customer relations representatives at Air Canada, said the cuts could have been lessened if Ottawa had developed a plan to support the aviation industry.
Unifor national president Jerry Dias said support for airline workers needs to be an immediate priority for Transport Minister Omar Alghabra who was named to the job this week in a cabinet shuffle that saw Marc Garneau move to foreign affairs.
“Today’s announcement leaves airline workers with continued disappointment in the federal government’s lack of action to support the industry,” Dias said in a statement.
With the reduction, Air Canada’s capacity in the first quarter of 2021 will be about 20 per cent of its capacity during the first quarter of 2019, the company says.
Air Canada notified airports in Atlantic Canada this week that it would cut additional routes in the region, suspending all flights in Gander, N.L., Goose Bay, N.L., and Fredericton, N.B., until further notice as of Jan. 23.
Air Canada will also suspend all passenger operations to Yellowknife, N.W.T. as of Jan. 23, the territory’s minister of infrastructure, Diane Archie, said in a statement Tuesday.
Other airlines will continue to operate flights to the city, and the cuts will not affect the Northwest Territories’ ability to offer essential services such as medical travel, Archie said.
Allison St-Jean, a spokeswoman for Alghabra, said the government was disappointed by airlines’ decision to cancel more regional routes.
“Accessibility of all of our regions is important and air links are essential to regional economic development and prosperity,” St-Jean said.
Air Canada is contacting affected customers to offer them options such as refunds or alternative travel arrangements, the company said.
The cuts come just days after Air Canada’s latest round of service reductions in Atlantic Canada went into effect on Jan. 11.
Monette Pasher, the executive director of the Atlantic Canada Airports Association, said in a statement that the repercussions of the service cuts would be felt for years to come in communities in Atlantic Canada.
“We cannot just flip a switch to turn air service back on when we get to the other side of this pandemic,” Pasher said. “We are going to have a long hard road ahead of us to rebuild air access for our region.”
CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.
It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.
The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.
Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.
TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.
The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 7, 2024.
BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.
The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.
On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.
“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.
“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”
Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.
BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.
The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.
BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.
It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.
The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”
Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.
This report by The Canadian Press was first published Nov. 7, 2024.
TORONTO – Canada Goose Holdings Inc. trimmed its financial guidance as it reported its second-quarter revenue fell compared with a year ago.
The luxury clothing company says revenue for the quarter ended Sept. 29 totalled $267.8 million, down from $281.1 million in the same quarter last year.
Net income attributable to shareholders amounted to $5.4 million or six cents per diluted share, up from $3.9 million or four cents per diluted share a year earlier.
On an adjusted basis, Canada Goose says it earned five cents per diluted share in its latest quarter compared with an adjusted profit of 16 cents per diluted share a year earlier.
In its outlook, Canada Goose says it now expects total revenue for its full financial year to show a low-single-digit percentage decrease to low-single-digit percentage increase compared with earlier guidance for a low-single-digit increase.
It also says it now expects its adjusted net income per diluted share to show a mid-single-digit percentage increase compared with earlier guidance for a percentage increase in the mid-teens.
This report by The Canadian Press was first published Nov. 7, 2024.
