As Air Canada’s third quarter revenues declined by 86 per cent to $757 million, the airline has taken measures to retire some aircraft, defer the deliver of some and cancel others. The cancelled orders include 10 Boeing 737-8s and 12 Airbus A220s, representing about 40 per cent of the remaining scheduled deliveries.
Calin Rovinescu, President and Chief Executive Officer of Air Canada said, “We have taken several measures to carefully rationalize our existing fleet: We are accelerating the retirement of 79 mainline and Rouge aircraft. We are deferring delivery of new Boeing 737-8 and Airbus A220 aircraft scheduled for delivery in 2021 and 2022 and cancelling 10 Boeing 737-8s and 12 Airbus A220s, representing about 40 per cent of the remaining scheduled deliveries.”
“Despite modifications made to our orders, these two aircraft remain the core of our narrowbody fleet and enable us to efficiently serve transcontinental domestic and transborder routes through improved economics and range, while providing an excellent customer experience. Through this fleet restructuring and other capital reduction initiatives, we have successfully lowered total projected capital expenditures by about $3.0 billion over the 2020 to 2023 period compared to our total projected capital expenditures at the end of 2019,” Rovinescu continued.
Air Canada is Canada’s largest domestic and international airline. Canada’s flag carrier is among the 20 largest airlines in the world and in 2019 served over 51 million customers.