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Air Canada stock drops after carrier cuts summer schedule

Click to play video: 'Air Canada cancels slew of flights as delays mount' Air Canada cancels slew of flights as delays mount
WATCH: Air Canada cancels slew of flights as delays mount – Jun 30, 2022

Air Canada‘s stock fell seven per cent in early morning trading after the carrier announced major cuts to its summer flight schedule.

The Montreal-based airline said Wednesday night it will nix more than 15 per cent of its flights in July and August as airports face lengthy delays and cancellations amid an overwhelming travel resurgence.

The move will see 154 flights per day on average dropped from the airline’s schedule– already operating at just 80 per cent of pre-pandemic levels– affecting hundreds of thousands of passengers.

Click to play video: 'Alghabra announces $105M in funding for 4 Canadian airports, air traffic control' Alghabra announces $105M in funding for 4 Canadian airports, air traffic control
Alghabra announces $105M in funding for 4 Canadian airports, air traffic control – Jun 29, 2022

The airline says the flights link mainly to its Toronto and Montreal hubs, and are all on domestic or Canada-U.S. routes.

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In an email to customers, Air Canada CEO Michael Rousseau cited “unprecedented” strains on the global aviation system as peak travel season kicks off.

Click to play video: 'Air Canada cancels over 100 daily flights for July, August' Air Canada cancels over 100 daily flights for July, August
Air Canada cancels over 100 daily flights for July, August – Jun 30, 2022

Air Canada shares fell $1.27 or 7.4 per cent to $15.80 Thursday morning before rebounding slightly, deepening a decline from more than $21 per share at the start of the month.

This report by The Canadian Press was first published June 30, 2022.

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