Air Canada plans to cut 2,000 jobs or 8 per cent of its workforce at the end of the year as it reduces capacity to deal with the rising cost of fuel.


Canada’s biggest airline warned yesterday there are likely more cutbacks to come as it announced it will cut capacity by 7 per cent from its fall and winter schedule.


With oil more than $133 a barrel, the airline estimates it will shell out almost $1 billion more in 2008 than it did in 2007. Among routes being jettisoned are the non-stop Toronto to Rome service — although that will remain for the summer season — and the Vancouver to Osaka, Japan, service.


Rival airline WestJet said it has no plans to cut capacity or lay off employees to combat rising fuel costs.