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Air Canada withdraws flight service from the unprofitable routes

In order to manage the global fuel price rise, Air Canada recently announced the suspension of some of the flights that operate over the unprofitable routes. The airline has also decided to cut the frequency of flights that operate on other routes, which will be announced soon.

The flight service operating over Ottawa-Thunder Bay route, Ottawa-Washington Dulles route, Montreal-Washington Dulles route, Calgary-London route, Calgary-Chicago route, Calgary-San Francisco route and Ontario route are failing to fetch enough profits and thus will be withdrawn from 1st May 2011.

The airline in a statement said that it has been unable to make profits over the above mentioned routes when compared to the cost after rise in the fuel prices. The airline will also reduce its flight capacity that was to be increased in the 2010 forecast from 5.6 percent to 6.5 percent; rather it is now expecting a system capacity growth of 4.5 percent to 5.5 percent in 2011.

The airline also said that the flight capacity, airfares and fuel surcharges will be adjusted according to the market conditions and demand.

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