Air Canada will axe 2,000 jobs and cut capacity across its network by 7% in the latest move by airlines struggling to handle the high fuel price.


A majority of the cuts will fall on US routes following a swathe of reductions already announced by US carriers, but overseas routes will see a 7% reduction. The capacity will be pulled in autumn and winter. Few details have been disclosed, but the Rome-Toronto winter service will be among the casualties.


The job losses mean redundancy for more than one in 12 staff at what is Canada’s biggest airline and the fourteenth largest in the world.


Air Canada chief executive Montie Brewer said: “I regret having to take these actions, but like most airlines, Air Canada needs to reduce flying that has become unprofitable. If fuel prices remain at current levels, we can anticipate further capacity reductions.”