Air Canada has suspended more than 800 employees for not being fully vaccinated against COVID-19 in line with federal rules.
The vast majority of Air Canada’s 27,000 cabin crew, customer service agents and others have received both shots, chief executive Michael Rousseau said Tuesday.
“Our employees have done their part, with now over 96 per cent fully vaccinated,” he said on a conference call with investors. “The employees who are not vaccinated or do not have a medical or other permitted exemption have been put on unpaid leave.”
The layoffs are “across the company” rather than concentrated in any particular job, spokesperson Peter Fitzpatrick said in an email.
The proportions align with those at WestJet Airlines, where fewer than four per cent of workers — fewer than 300 out of 7,300 — are unvaccinated, the company said in an email.
Prime Minister Justin Trudeau announced last month that as of Oct. 30, Ottawa would require federally regulated air, rail and shipping companies to establish mandatory vaccination policies for employees.
Leisure bookings have recovered, but not business travel
Air Canada said it sees hope on the horizon as revenues soared over 2020 levels last quarter amid stronger sales for winter, despite continuing to operate far below pre-pandemic capacity and at a loss of hundreds of millions of dollars.
Domestic leisure bookings have bounced back, prompting a recall of more than 10,000 laid-off employees since the start of the year — 6,500 of them since July. But business travel remains down across the board due in part to the persistence of remote work, executives said Tuesday.
COVID-19 travel: What’s changing for Canadians
WATCH | More Canadian snowbirds are expected to cross the border into the United States this year as pandemic restrictions loosen:
Canadian snowbirds eager to head south
5 days ago
More Canadian snowbirds are expected to cross the border into the United States this year as pandemic restrictions loosen. 2:00
“We’re witnessing a strong rebound in VFR (visiting friends and relatives), and leisure traffic remains strong, specifically within North America, across the Atlantic and to sun destinations,” chief commercial officer Lucie Guillemette said on the conference call.
“We were pretty confident that come 2022 corporate Canada returns to their offices and business travel should return. But no doubt that for us, business has lagged a little bit.”
Revenue nearly tripled year over year to more than $2.1 billion in the quarter ended Sept. 30, beating expectations by more than 15 per cent, according to financial markets data firm Refinitiv. Capacity also increased by 87 per cent.
But revenue fell more than 60 per cent short of Air Canada’s third-quarter figures in 2019 while capacity remained two-thirds below, as COVID-19 fallout continues to dent carriers’ bottom lines.
WATCH | Expect travel to cost more post-pandemic:
Travel costs rise as borders reopen to international travel
19 hours ago
As borders reopen to international travel, Canadians planning trips are being hit with sticker shock, with the high prices for mandatory PCR tests, the end of discounted airfare and rising rental car rates. 2:01
‘No textbook on this type of recovery’
“There’s no textbook on this type of recovery, or any in the history,” said Rousseau, who took over as CEO in February.
“There’s no doubt we’re very encouraged by what we see. And there’s no doubt that the length of the recovery has moved in from the consensus of 2025 to at least 2024 and maybe 2023.”
In its outlook, the Montreal-based airline said it plans to expand its fourth-quarter capacity by about 135 per cent compared with the same period in 2020. However, that capacity — calculated using an industry metric called available seat miles — will barely reach half the amount of its pre-pandemic level.
Net cash flow of $153 million was well above analyst expectations of cash burn of up to $460 million. It marked the first quarter Air Canada has enjoyed cash flow in the black since the onset of the pandemic.
Rousseau also stressed a record cargo performance of more than $1 billion so far this year. The carrier began to shift toward air freight last spring, converting several of its retired Boeing 767 jetliners to cargo aircraft.
With fewer flights and less freight being transported in the luggage compartments of passenger planes, the price of shipping cargo by air has increased. Other airlines such as American Airlines and United Airlines also began operating cargo-only last year, hoping to use the opportunity to stem their losses.
Rising fuel prices will impact recovery
Robert Kokonis, president of Toronto-based consulting firm AirTrav Inc., called Air Canada’s results “a tremendous source of optimism.”
However, rising fuel prices and the pace of business travel’s revival remain areas of anxiety.
“Many employees have not returned to the office, companies are continuing to make use of virtual conferencing tools, and air travel for inter-office business and international trips continues to be restricted,” Kokonis said in an email.
“At least in the short-term, these factors will suppress demand for corporate travel, which is traditionally the highest contributor to airline top lines.”
Air Canada’s share price closed up $1.01 or 4.4 per cent at $24.02 on Tuesday.
Air Canada reported a loss of $640 million in its third quarter compared. The loss amounted to $1.79 per diluted share last quarter compared with a loss of $685 million or $2.31 per diluted share a year earlier.
Analysts had expected a loss of $554.7 million, or $1.44 per diluted share, according to Refinitiv.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
