Air Canada stock drops after carrier cut Globalnews.ca

air CanadaThe stock fell seven per cent in morning trade after the carrier announced major cuts Heat flight schedule.

The Montreal-based airline said Wednesday night that it will shut down more than 15 percent of its flights in July and August as airports face long delays and cancellations amid heavy downpours. travel Resurrection.

The move will reduce the airline’s schedule to an average of 154 flights per day – already operating at only 80 percent of pre-pandemic levels – affecting hundreds of passengers.

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The airline says the flights primarily connect to its Toronto and Montreal hubs, and are on all domestic or Canada-US routes.

In an email to customers, Air Canada CEO Michael Russo cited “unprecedented” stress on the global aviation system as peak travel season began.

Air Canada shares fell $1.27, or 7.4 percent, to $15.80 on Thursday morning, then deepened the decline of more than $21 a share at the start of the month, before rebounding slightly.

This report by The Canadian Press was first published on June 30, 2022.