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Air Canada reports deep loss, shares drop
(Source : Reuters, February 13, 2009)

Air Canada reported a worse than expected quarterly loss Friday on waning passenger revenue and sharply higher costs, and said it aims to wrest more savings from operations to preserve cash. Shares fell 23% as investors fretted over its ability to ride out the recession. CE Montie Brewer said the carrier aims to reduce costs by C$100m in 2009, while reducing capacity by up to 3.5%. It has already targeted up to $40m in savings by seeking concessions from its suppliers. 'Although oil prices have since retreated, our tight-capacity strategy remains valid today as demand weakens given the global economic crisis,' Brewer told analysts. It also warned that the recession may put more pressure on its revenues in 2009. It said it has up to $1b of assets it could use to increase its liquidity if needed.

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