Air Canada to Cut 4,000 More Jobs

Air Canada said it will eliminate 4,000 more jobs to cut costs amid higher fuel costs and decreased business travel because of the economic slowdown.

The airline said it will reduce its work force through layoffs, which come in addition to its previously announced intention to trim 3,500 employees this year through voluntary buyouts. Air Canada employed about 41,500 people at the end of 2000.

While releasing figures showing a net loss of $108 million amid a “dramatic falloff in business” in the second quarter, Chief Executive Robert Milton said he expects Air Canada to break even in the current quarter but may post losses in the final three months of the year and the first quarter of next year as a result of reduced business travel and high fuel prices, before returning to profitability.

As part of the cost-cutting, executives will take a 5% pay cut, and lower-level managers will have their salaries reduced by 3.5%. Milton will take a 10% pay cut.