Air Canada is laying off more than 5,000 flight attendants. (Photo by THE ASSOCIATED PRESS)

Thousands laid off as airlines struggle with COVID-19 cancellations, travel bans

Some airlines say they will hire back workers after the crisis subsides

Air Canada is laying off more than 5,000 flight attendants as the country’s largest airline cuts routes amid plunging demand.

The Montreal-based carrier is laying off about 3,600 employees, plus 1,549 flight attendants at its low-cost subsidiary Rouge, according to Wesley Lesosky, head of the Air Canada component of the Canadian Union of Public Employees. However, Air Canada has a $7.3-billion cushion to fall back on — more than the most profitable U.S. carrier, Delta Air Lines.

The layoffs will take effect by April and affect roughly 60% of flight attendants. Air Canada says it will suspend most of its international and U.S. flights by March 31.The carrier says employees will be returned to active duty status once flights resume.

Transat AT Inc. says it has temporarily laid off about 70 per cent of its workforce in Canada, about 3,600 people.

Some of these layoffs are effective immediately, while others will take effect following advance notice of up to one month. The layoffs include all flight crew personnel.

WestJet Airlines Ltd. has halved its domestic capacity and cancelled all overseas and U.S. routes for 30 days. The carrier is shielded from stock market judgment after Onex Corp. acquired it in December and the company was delisted from the Toronto Stock Exchange.

Airbus is cancelling a planned dividend payment and lining up 15 billion euros ($16 billion) in new credit to give the European aircraft giant more cash to weather the crisis. Airbus The plane maker is withdrawing the proposed 2019 dividend payment of 1.8 euros ($1.9) per share will save the company 1.4 billion euros ($1.5 billion). Airbus is also making pension savings and says it has significant liquidity to cope with the crisis. It had shut several plants last week to adapt them to safer health conditions.

READ MORE: North American stock markets start the trading week down, loonie falls

READ MORE: Feds launch ad campaign urging social distancing, hygiene during COVID-19 crisis


Like us on Facebook and follow us on Twitter.

Air TravelCoronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

COVID-19 tests come back negative in remote First Nation community

“There are no suspected cases in the community at this time.”

Wildway Farms open for business in Hagensborg

Local entrepreneurs Gwyneth Anderson and Joseph Battensby are hard at work at their new business

Young boy finds mask stolen during recent break-in

Gage Pootlass immediately took the mouse mask back to its rightful owner, Kathleen Booth

Bear gets into garbage at Thorsen Creek Landfill after waste disposed into wrong bin

A grizzly bear accessed garbage that was put in the wrong bin and ended up outside the electric fence

578 British Columbians currently infected with COVID-19

Seventy-eight new cases confirmed in past 24 hours

Conservation seizes fawn illegally kept captive in Vancouver Island home

A Comox Valley resident charged and fined under the Wildlife Act

Pandemic could be driving more parents to get on board with flu shot: study

University of B.C. study gauges willingness for parents to vaccinate children for influenza

Watchdog clears Okanagan RCMP in death of man after arrest over alleged stolen pizzas

The man died in hospital after having difficulty breathing and broken ribs

Have you seen Berleen? B.C. pig destined for sanctuary goes missing

Berleen was less than two weeks from travelling to Manitoba when she vanished

Health Canada says several kids hospitalized after eating edible pot products

People warned not to store cannabis products where children can find them

‘It’s not just about me’: McKenna cites need to protect politicians from threats

Police investigation was launched after someone yelled obscenities at a member of McKenna’s staff

Michigan plans dedicated road lanes for autonomous vehicles

First study of its kind in the U.S. to figure out whether existing lanes or shoulders could be used

Most Read