CANADA AT A GLANCE: AM - DECEMBER 22.

Resource News International, December, 2000

Winnipeg, MB, Canada, Dec. 22, 2000

AIR CANADA CUTS 3,500 JOBS

Buffeted by bad weather and higher-than-expected fuel costs, Air Canada announced yesterday it will cut 3,500 jobs and increase air fares by an average of 6%.

The national carrier, which took over rival Canadian Airlines in the spring, also warned that it will post larger financial losses than analysts had predicted. And analysts said the job cuts and fare increases, bad as they are, may not be the last.

"The other issue here is an uncertain economy, which could mean the airline is looking at lower passenger loads next year, which would mean it needs fewer people and planes," said airline analyst Frederick Larkin of HSBC Securities in Toronto. "I suspect the stock market...

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