Air Canada works to reduce capex as restrictions constrain business

The COVID-19 pandemic continues to wreak havoc on airlines worldwide, but Air Canada faces an added layer of uncertainty as Canada remains largely closed off for travel, with no target date for the lifting of restrictions.

Air Canada continues to cut costs, build liquidity and rightsize its operations, which includes its ongoing efforts to retire 79 aircraft from its fleet and shrink its network footprint.

There is also little doubt that Air Canada will need to adjust its aircraft order book as the company's planned CAD3 billion capex for 2021 is not conducive to operating during a pandemic. As uncertainty over when Canada will ease restrictions remains firmly in place, the airline is already warning that it could possibly cancel orders for Airbus A220s and Boeing jets.