Tuesday, April 7, 2020
April 7, 2020

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Airlines cut routes, lay off workers in travel downturn

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Barber Sami Matta, left, gives a haircut to Steve Perosino, of Dedham, Mass., right, at Chris & Sam's Barbershop, in Norwood, Mass., Monday, March 23, 2020. The Barbershop is to close by noon Tuesday, March 24, in keeping with Mass. Gov. Charlie Baker's order that all non-essential businesses close at noon Tuesday and remain closed through Tuesday, April 7, out of concern about the spread of the coronavirus. For most people, the new coronavirus causes only mild or moderate symptoms, such as fever and cough. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia. The vast majority of people recover from the new virus. (AP Photo/Steven Senne)
Barber Sami Matta, left, gives a haircut to Steve Perosino, of Dedham, Mass., right, at Chris & Sam's Barbershop, in Norwood, Mass., Monday, March 23, 2020. The Barbershop is to close by noon Tuesday, March 24, in keeping with Mass. Gov. Charlie Baker's order that all non-essential businesses close at noon Tuesday and remain closed through Tuesday, April 7, out of concern about the spread of the coronavirus. For most people, the new coronavirus causes only mild or moderate symptoms, such as fever and cough. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia. The vast majority of people recover from the new virus. (AP Photo/Steven Senne) Photo Gallery

Airlines can’t seem to cut capacity as fast as air travel is fading as businesses and vacationers pull back on plans. Industry analysts are slashing their expectations even faster, with cuts of 40 percent or more the norm.

Air Canada is laying off more than 5,000 flight attendants as the country’s largest airline cuts routes amid plunging demand. The layoffs will take effect by April and affect roughly 60 percent of flight attendants. Air Canada says it will suspend most of its international and U.S. flights by March 31.

GE Aviation will cut about 10 percent of its U.S. workforce. David Joyce, vice chairman of GE and CEO of GE Aviation, will give up half of his salary as of April 1.

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