Fuel costs to cost Air Canada 2,000 jobs

MONTREAL, June 17 (UPI) -- Air Canada announced in Montreal Tuesday it is cutting some 2,000 jobs and reducing flights because of record fuel prices and warned more cuts may follow.

In a statement quoted by the Canwest News Service, the airline's president, Montie Brewer expressed regret, but said plans were to reduce system capacity by 7 percent in the fourth quarter of 2008 and the first quarter of 2009.

The country's flagship airline employs approximately 23,900 full-time employees. Air Canada is the 14th largest commercial carrier internationally, its Web site said.

The report said new fuel surcharges ranging from $20 to $60 were being imposed, depending on trip duration and destination.

The carrier issued the release through the Canada News Wire company, which carried the following instructions: "Not for distribution to United States newswire services or for dissemination in the United States." A Canada Newswire representative was unable to tell UPI in Toronto about the unprecedented exclusion notice.