Air Canada Announces 1300 Job Reductions in Line with Seasonal Capacity Adjustment

Air Canada said today that it would reduce its workforce by 1300 jobs on a temporary basis in line with the normal reduction of capacity to meet the seasonal drop-off in demand during the traditionally slower fall and winter period. The job reductions, affecting approximately 900 flight attendants (approximately 300 of whom were hired as summer temporaries) and 400 airport ramp service personnel, will be implemented on a gradual basis starting on September 30, 2002. The airline will work with the unions in an effort to reduce the number of seasonal layoffs through various mitigation programs. The layoffs are temporary and the airline expects to recall affected employees as necessitated by demand as it did for the 2002 peak summer travel period. 

This job reduction is in line with the seasonal capacity adjustment previously indicated and the company still foresees a profitable third quarter and an ongoing improvement in 2002 year-over-year financial results.