Air Canada cutting routes to cut losses

MONTREAL, June 30 (UPI) -- Fuel-cost-driven losses will be addressed by Air Canada with both domestic and international route cuts, the Montreal company said.

Beginning late August, flights between Toronto and Trinidad will be dropped, followed by flights from Montreal to the small community of Deer Lake, in northwestern Newfoundland, the Globe and Mail reported Monday.

During the winter, seasonal service being between Calgary, Alberta, and Palm Springs, Calif., and between Ottawa and Orlando, Fla., are slated for discontinuation, the company said.

"Some of our flying this summer will be unprofitable even with full planes," Air Canada Chief Executive Officer Montie Brewer told employees in a memo dated June 17. That memo also warned of some 2,000 job layoffs because of the soaring cost of fuel.

Airlines worldwide are grappling with the problem, which on Monday saw another record peak for crude oil on the New York Mercantile Exchange of $143.67 per barrel.