A result of COVID 19, Air Canada reported a net loss of $1.05 billion in the first quarter of 2020, including a net cash burn in March of $688 million. The carrier has undertaken a range of structural changes, including significant cost savings and liquidity measures, of which today announced service suspensions form part. Of the other cost saving measures include a workforce reduction of approximately 20,000 employees representing more than half of its staff achieved through layoffs, severances, early retirements and special leaves as well as a company wide cost reduction and capital deferral program that has to date identified about $1.1 billion in savings, a reduction of its system wide capacity by approximately 85 per cent in the second quarter compared to one year ago and an expected third quarter capacity reduction of at least 75 per cent from the previous year, the permanent removal of 79 aircraft from its mainline and Rouge fleets, and raising approximatively $5.5 billion in liquidity since March 13 through a series of debt, aircraft and equity financings..
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