Coronavirus: Air Canada lays off 5,000, suspends most international and US flights

Staff and wire reports | USA TODAY

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The rapid spread of the coronavirus since it was first reported in China has dealt an unparalleled shock to the world economy and has particularly impacted airlines across the globe.

Air Canada is laying off more than 5,000 flight attendants as the country’s largest airline cuts routes amid plunging demand.

The Montreal-based carrier is laying off about 3,600 employees, plus 1,549 flight attendants at its low-cost subsidiary Rouge, according to Wesley Lesosky, head of the Air Canada component of the Canadian Union of Public Employees. The layoffs will take effect by April and affect roughly 60% of flight attendants.

Air Canada says it will suspend most of its international and U.S. flights by March 31. The carrier says employees will be returned to active duty status once flights resume.

Meanwhile, the United Arab Emirates is suspending passenger transits through Dubai, the world’s busiest international airport, for two weeks to help stop the spread of the coronavirus. Suspending transit through Dubai, which connects Europe with Asia and Australia, will affect travelers around the world.

And low-cost airline Eastar Jet has become the first South Korean carrier to shut down all flights as demand plunges. The company says it will temporarily suspend its domestic flights from Tuesday to April 25. Other budget South Korean carriers including Air Seoul, Air Busan and T’Way Air operate only domestic flights after suspending their international services.

U.S. airlines are counting on a bailout President Donald Trump pledged last week.

"Airlines would be No. 1," the president said Wednesday. "You go from having the best year they have ever had to having no passengers because of what we have had to do to win this war – and it's a war."

But on Monday, congressional negotiations on an economic stimulus package were in disarray as more than 100 million Americans huddled in lockdowns amid the unrelenting advance of the coronavirus pandemic.

On Saturday, United Airlines announced it would reduce international flights by 95% for April due to the government's coronavirus-induced travel advisories. Later that same day, the carrier said it planned to reinstate a handful of international flights "in an effort to get customers where they need to be" and "help displaced customers who still need to get home."

United's announcement was just the latest cutback in response to the pandemic. American Airlines reduced its international flights by 75% this week, and Delta announced that it planned to park at least 600 planes, more than half of its fleet.

Contributing: Dawn Gilbertson, Chris Woodyard, Rasha Ali, David Oliver, USA TODAY; The Associated Press

Ask the Captain: What are airlines doing to sanitize planes and airports?

Update: United Airlines reinstates some international flights to help displaced customers get home