Air Canada to cut 2,000 jobs as it reduces services

MONTREAL: Air Canada is cutting up to 2,000 jobs at the end of this year as it sharply reduces capacity to deal with the rising cost of fuel.

The airline said Tuesday it is cutting trips by seven percent in its fall and winter schedule as oil prices rise to record levels. Company officials say it will need fewer employees.

Canada's biggest airline says every one-dollar increase in the price of oil per barrel adds about C$26 million (US$ 25.5 million) to its annual fuel cost.

Air Canada said it will have to cut a nonstop flight from Toronto to Rome, Italy, after August, and a nonstop flight from Vancouver to Osaka, Japan.