Air Canada reduces first-quarter capacity by 25 per cent, cuts 1,700 jobs

Air Canada says it will cut 1,700 jobs as it scales down flights for the first quarter of 2021.

The 25 per cent reduction in service will also affect 200 employees at Air Canada's Express carriers, the company said Wednesday morning.

With the reduction, Air Canada's capacity in the first quarter of 2021 will be about 20 per cent of its capacity during the first quarter of 2019, the company says.

Lucie Guillemette, Air Canada's executive vice president and chief commercial officer, said in a statement that increased travel restrictions by federal and provincial governments have had an immediate impact on the company's bookings.

Air Canada notified airports in Atlantic Canada this week that it would cut additional routes in the region, suspending all flights in Gander, N.L., Goose Bay, N.L., and Fredericton, N.B., until further notice.

Air Canada is contacting affected customers to offer them options such as refunds or alternative travel arrangements.