The requirement to take a COVID-19 test to take a plane undermines demand, believes Michael Rousseau, president and CEO of Air Canada. The air carrier wants this obligation to disappear.
“We believe that with the policies in place and the high vaccination rate of the general public, pre-departure screening is not necessary,” said the executive during a conference call with financial analysts aiming to discuss third quarter results. We will advocate for its elimination. “
He also said that 96% of employees are vaccinated and those who refused to be vaccinated, with the exception of those who refuse the vaccine for medical reasons, are on sick leave without pay.
A logistical and financial challenge
Passengers arriving in Canada by air must be screened within 72 hours of their return home. The cost of these tests would present a logistical and financial challenge that would discourage some travelers, several industry players have said in recent days.
The comment comes after the airline released its third quarter results, amid a gradual recovery in the airline industry.
While almost tripling from the same period last year, Air Canada’s revenues, at $ 2.1 billion, remain 62% lower than in the third quarter of 2019 (before the pandemic).
The company is at a “turning point” in cash flow, said Konark Gupta of Scotiabank. The company managed to generate $ 153 million in capital as it expected to burn between $ 280 million and $ 460 million in cash in the quarter.
Air Canada posted a loss of 640 million in the third quarter, or $ 1.79 per share, compared to a loss of 685 million, or $ 2.31 per diluted share, in the corresponding quarter of fiscal year 2020.
No shortage of workers
Mr. Rousseau also assured that the company should not deal with a shortage of pilots. The specter of a shortage hangs over the industry, with several pilots having chosen to retire or change careers.
In mid-October, the US carrier Southwest was forced to cancel nearly 2,000 flights because it could not find the necessary staff.
Air Canada does not have that kind of problem, said Craig Landry, chief operating officer. “We had no difficulty in meeting our flight schedules, as other companies have had elsewhere. “
The Montreal carrier has recalled more than 10,000 employees, all categories combined, since the start of the pandemic. “We have a very favorable response. We even hired new recruits. There is a great interest in working at Air Canada. “