Air Canada shares fell seven percent in early morning trading after the airline announced major cuts to its summer flight schedule.
The Montreal-based airline announced Wednesday night that it will ground more than 15 percent of its flights in July and August as airports face lengthy delays and cancellations amid an overwhelming resurgence in travel.
The move removes an average of 154 flights a day from the airline’s schedule – already operating at just 80 percent of pre-pandemic levels – affecting hundreds of thousands of passengers.
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The airline says flights primarily connect to its Toronto and Montreal hubs and all operate on domestic or Canada-US routes.
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In an email to customers, Air Canada CEO Michael Rousseau referred to “unprecedented” strains on the global airline system as the peak travel season begins.
Air Canada shares fell $1.27, or 7.4 percent, to $15.80 on Thursday morning before recovering slightly, deepening the more than $21 per share drop earlier in the month.
This report from The Canadian Press was first published on June 30, 2022.
© 2022 The Canadian Press
https://globalnews.ca/news/8958813/air-canada-stock-drops-summer-schedule/ Air Canada shares fall after the airline cut summer schedules