Air Canada (TSX:AC) is the largest provider of scheduled passenger services in the Canadian market, the Canada-United States (U.S.) transborder market, and in the international market to and from Canada. The company is focused on connecting Canada and the world. The company enhances the company’s domestic and transborder network with regional flights operated on behalf of Air Canada under the Air Canada Express banner.
On March 1, 2021, Air Canada announced an agreement to revise the company’s capacity-purchase agreement (CPA) with Jazz Aviation. Due to the devastating impacts of the COVID-19 pandemic on global travel, Air Canada has significantly scaled down the company’s entire network.
Air Canada reduced the company’s system capacity by 84% during the last three quarters in 2020 when compared to 2019 while maintaining necessary services on key routes to support essential travel and the trade and flow of required goods. The airline continues to dynamically adjust capacity and take other measures to adjust for demand, including, as a result of health warnings, travel restrictions, quarantines, border closures, and market and regulatory conditions.
Further, Air Canada is permanently retiring certain older aircraft from the company’s fleet, consisting of less-efficient Boeing 767, Airbus A319, and Embraer 190 aircrafts. The retirement of…