Despite reaching a "tentative" agreement with its pilots' union over cost savings, Canadian Airlines has admitted that it is on course for its seventh successive year of losses.
The Canadian carrier had started the year forecasting a net profit of around C$52 million ($38 million) for 1995, but after announcing a dismal set of figures for the second quarter, the airline group now expects to turn in a loss of C$35 million.
Canadian, which has not made a profit since 1988 blames this most recent delay in its recovery, on the weak domestic economy, as well as a C$13 million charge to cover the group's latest restructuring plan.
The gloom stems from the second-quarter performance of a C$13.5 million loss.
Capacity increased by more than 10%, but the expected traffic increase failed to materialise.
The tentative agreement reached with the pilots' unions will yield savings of more than C$41 million a year, he says, adding that negotiations with other unions are also making good progress.
Source: Flight International
