Air Canada is suspending a number of unprofitable routes and slashing planned seat capacity as it grapples with soaring fuel costs. The airline’s move, revising a capacity forecast published just five weeks ago, highlights the extent to which fuel costs are forcing some airlines to rethink growth. It also of course shows a much firmer grip on the need to move with cost factors at speed. Air Canada is suspending flights effective May 1 on a number of routes that it says are no longer profitable with fuel prices above £110. Routes cut include Ottawa to Thunder Bay, Ottawa to Washington Dulles, Montreal to Washington Dulles, Calgary to Chicago, Calgary to San Francisco, and Calgary to London. Air Canada’s move essentially means that it will offer fewer seats this year than previously planned, by cutting routes, flight frequencies, or using smaller aircraft. It also said that it will continue to evaluate and adjust its fares and fuel surcharges.
The airline also increased fuel surcharges yesterday that it recently introduced on US flights.