MIAMI – Following Air Canada’s (AC) 1Q loss report, its subsidiary Rouge (RV) will retire a number of Boeing 767 aircraft due to the hault of long-haul international operations.
According to the statement, the operation is part of a 79 Boeing 767 withdraw plan related with principal carrier Air Canada (AC) and its subsidiary RV.
Even though some aircraft will remain in the Boeing 767 fleet, AC CFO, Michael Rousseau said that key European international destinations covered by RV would be now operated by AC’s Airbus A330 and Boeing 777.
First quarter loss report
Previously, the principal carrier reported that so far in 2020 it had a CA$1bn loss and a 17% plunge of passenger revenue per mile due to “the severity and abruptness of the impact” that the COVID-19 pandemic has had on the company.
As the negative impact started in January with flight suspensions to China, the situation became worse in March with the mandated social distancing measures, the government-imposed travel restrictions and the shutting down of economies.
Regarding the forecasted pandemic scenario, AC said that a recovery to 2019 revenue levels and capacity could take about three years, even though it is implementing measures to preserve its operations. By now, the carrier has layed off 50% of its workers as part of these cost saving actions.
Additionally, the report showed that the company revenue dropped to CA$712m from CA$3.7b in comparison with the same period in 2019, while it also lost CA$4 per share in contrast with a previous CA$1.26 profit.