Air Canada suspends routes as COVID restrictions bite travel

A gray/white Air Canada jet takes off on an overcast day with snow in the foreground.

Air Canada (TSX: AC) is reducing passenger system capacity by 25% and laying off 1,700 workers in the first quarter due to new Canadian travel restrictions aimed at curbing the resurgence of COVID-19, the company said Wednesday.

More than 200 employees in the airline’s regional express division are also being furloughed. Air Canada said it is working with unions to mitigate the impact on employees. The company released 20,000 workers in May.

The first-quarter reduction in flights will put...

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