Air Canada may cancel aircraft orders from Boeing, Airbus with Q2 loss
Air Canada would consider possible cancellations of aircraft orders from Boeing and Airbus after COVID-19 pushed the carrier into a second-quarter loss.
Air Canada's second straight quarterly loss expects cash burn to slow slightly in the third quarter.
The airline blamed Canadian travel restrictions, which it described as among the most severe in the world.
Air Canada CEO Calin Rovinescu said that without government support for the industry and as travel restrictions persist, the carrier is considering other options for further cost and capital reduction.
The options include more route suspensions and cancellations of Boeing and Airbus aircraft orders, including the Airbus A220, which is manufactured in the Canadian province of Quebec.
Air Canada expects its third-quarter capacity to decline by 80 percent, after seeing a 96 percent drop in passengers during the second quarter.