Air Canada says it's going to lose $200 million because of coronavirus
On Tuesday, Air Canada announced that it expects to lose $200 million because of coronavirus.
The Canadian airline was forced to cancel flights to mainland China last month following the outbreak of the deadly virus, including routes to Wuhan, Beijing, and Hong Kong.
Air Canada expects to take a massive hit in first-quarter earnings as a result of the cancellations.
The airline also cited the grounding of its Boeing 737 MAX as a primary contributor to its financial loss.
Chief Financial Officer Michael Rousseau said that routes connecting major Canadian cities to Beijing and Shanghai comprise about six per cent of Air Canada's available seat miles.
Air Canada believes that the cancelled routes to China — currently suspended until March — will be operational again by summer 2020, based on data from previous virus outbreaks.
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