Air Canada drops 8 cities from route map amid coronavirus adjustments
Air Canada will end service to eight cities in Canada and make other adjustments to its map as a result of the coronavirus pandemic in what some see as a play for government aid.
The Montreal-based carrier will end service to eight regional destinations across eastern Canada, plus drop 30 routes, as it adjusts to lower demand due to COVID-19, Air Canada said on Tuesday. It also cited the Canadian government's restrictions on international arrivals into the country for the cuts.
"I am saddened by the impact today's announcement... but respect and understand the difficult choice our partner, Air Canada, has had to make," Joe Randell, president and CEO of the Chorus Aviation that operates many of the discontinued flights, said in a statement.
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Air travel has been decimated by the pandemic. Statistics Canada's latest data shows passenger numbers fell 97% year-over-year to just 213,000 people in April. While the number of flyers has recovered some since then, numerous reports indicate that it is far below 2019 levels.
In July, Air Canada plans to fly about 37% of what it flew in Canada a year ago, according to Cirium schedules. WestJet plans to fly about 30% of what it flew in 2019.
Porter Airlines, which suspended flights in the early days of the pandemic on March 20, has postponed plans to resume flights until Aug. 31.
The recovery in air travel is widely expected to take at least two to three years. However, at least one recent update has forecasted a slower than initially expected return of flyers to at least 2023.
Related: Air travel recovery may come slower than expected
Some are suggesting that Air Canada's announcement may be the latest move in its push to get the Canadian government to relax travel restrictions or provide airlines with financial aid. To date, the country has only provided its carriers with access to a wage subsidy program.
In an interview with the Financial Post on Tuesday, Air Canada CEO Calin Rovinescu said the government needed to either ease travel restrictions or provide aid to Canadian carriers.
“Either one or the other or both. But it can’t be neither," he said.
Related: Air Canada resumes US flights, will serve fewer than half its destinations this summer
Air Canada's service reductions could be a harbinger of what is to come in the U.S. While American carriers have maintained most of their maps under conditions of the federal coronavirus aid package, or CARES Act, those rules are set to lift on Sept. 30. At that time, airlines could pull destinations as needed to fit their expectations that they will emerge smaller from the crisis.
"Starting Oct. 1, every airport on an airline network is fair game for being cut," Henry Harteveldt, a travel industry analyst and president of Atmosphere Research, told TPG. "Stations that are not profitable, and do not have the prospect to quickly become profitable, will be dropped like an ex-spouse in a bitter divorce."
Only American Airlines has permanently exited a domestic city due to the crisis to date. The carrier ended flights to Oakland (OAK) on June 3, consolidating its service in California's Bay Area to just San Francisco (SFO) and San Jose (SJC) airports.
Related: A country-by-country guide to coronavirus recovery
Below is a list of the destinations where Air Canada will end service.
- Bathurst, New Brunswick (ZBF)
- Wabush, Newfoundland and Labrador (YWK)
- Gaspé, Quebec (YGP)
- Baie Comeau, Quebec (YBC)
- Mont Joli, Quebec (YYY)
- Val d'Or, Quebec (YVO)
- Kingston, Ontario (YGP)
- North Bay, Ontario (YYB)
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.