A surge in cases of COVID-19 infection, travel restrictions and falling demand: it’s a feeling of déjà vu for airlines, forced to cancel flights because of the Omicron variant. At the same time, Transat AT is preparing to lay off 160 employees who had been on layoff since the summer.
The Quebec tour operator followed suit with WestJet and Air Canada on Thursday, signaling that 30% of its flights scheduled by February 25 would be canceled as bookings are down and cancellation requests increase.
“We are monitoring the situation closely and, depending on how it evolves, we will determine whether other adjustments will be necessary for the rest of our winter program,” said Transat AT spokesperson Pierre Tessier.
This resurgence of cases of infection is a step backwards for the aviation sector, which was beginning to recover from the first year of a pandemic which left deep scars.
The decision of Air Transat’s parent company comes as Air Canada has just decided that its service will be reduced to 14 sun destinations between January 24 and April 30. WestJet has also cut its flight schedule by 15% until the end of January. Several members of its flight crew must self-isolate because they have been infected with the new coronavirus.
In the United States, airlines have also canceled several thousand flights since the holiday season.
“We are in a traditionally low time in demand,” says aviation expert and McGill University lecturer John Gradek. I don’t think there will be such significant service cuts as in the past. Hopefully that will be a thing of the past in March. ”
Transat AT did not want to specify the routes affected. These are, according to the company, “flights where profitability was affected by low occupancy rates” and in all “destinations offered this winter”.
The tour operator says it will communicate with customers affected by the changes. They will be able to obtain a refund. They will also be offered date changes for their reservation.
Serial cancellations
According to aviation data from the firm Cirium, Air Transat planes were scheduled to make 264 flights this month. Since the start of the year, no less than 1,417 flights have been canceled by Air Canada (765), WestJet (615), Flair (23), Porter (2) and Sunwing (1), according to Cirium.
On December 15, due to the spread of the Omicron variant, the Trudeau government advised against non-essential overseas travel. Ottawa had also issued a warning to travelers indicating that their return home could be complicated by new travel restrictions.
By email, Air Canada said it did not anticipate layoffs despite a drop in activity. At Transat AT, Mr. Tessier limited himself to pointing out that the situation was evolving “extremely rapidly” and that the “appropriate decisions” would be taken “in a timely manner”.
The tour operator also sent two layoff notices to the Ministry of Labor, Employment and Social Solidarity last month concerning 161 employees. These are non-union employees, according to Transat AT’s vice-president of public affairs Christophe Hennebelle.
“The Canada Emergency Wage Subsidy (CUSS) ended on August 28 and in Quebec, employees can remain on layoff for up to six months,” he said. At the end of February, we have to recall them or fire them. ”
Since the gradual resumption of its activities last July, Transat AT has recalled several employees who had lost their livelihood due to the health crisis.
The company was hoping to have more recalls, but the Omicron variant “is muddying the waters,” Hennebelle said. According to the notice sent to the Ministry of Labor, the layoffs will take place on February 26 and 27.
On the Toronto Stock Exchange on Thursday, the title of Transat AT closed at $ 4.14, up two cents, or 0.5%.
– With the collaboration of William Leclerc, Press
2600: This is the number of active employees of the tour operator. It had around 5,200 employees before the pandemic.