Air Canada has disappointing Q4
01 / 03 / 2009
AIR Canada has reported a worse than expected quarterly loss. It lost C$727 million (US$565 million) for the fourth quarter, down from last year when it made a profit of C$35 million ($27 million).
The carrier plans to make savings in operations to try and make up for the loss. Chief executive Montie Brewer said the airline aims to reduce costs by another C$100 million (US$81 million) in 2009 by reducing its capacity by up to 3.5 per cent. It also plans to make save C$40 million by seeking concessions from its suppliers.
The carrier has already cut 2,000 jobs.
“Although oil prices have since retreated, our tight-capacity strategy remains valid today as demand weakens given the global economic crisis,” Brewer said.
Air Canada said it has up to C$1 billion of assets it could use to increase its liquidity if needed.