Air Canada reported on May 4, 2020, a $1.05 billion loss in its first quarter. (Photo by THE CANADIAN PRESS)

Trudeau hopes government can help Air Canada following announcement of layoffs

Air Canada will lay off more than half of its 38,000 employees next month

Prime Minister Justin Trudeau says the government will work closely with Air Canada to see if any more help can be offered after the airline announced mass layoffs yesterday.

Trudeau acknowledges it’s a very difficult situation for airlines and the travel industry during the COVID-19 crisis.

Air Canada will lay off more than half of its 38,000 employees next month as it grapples with the fallout from the COVID-19 pandemic. The airline estimates about 20,000 of its employees will be affected.

Air Canada’s move was announced after Trudeau extended the $73-billion Canada Emergency Wage Subsidy through the end of August earlier Friday.

Trudeau said the government will continue to work with Air Canada to try to determine the best way to get through the crisis.

Meanwhile, Trudeau says Health Canada has authorized the first clinical trial for a potential COVID-19 vaccine at Dalhousie University in Nova Scotia.

ALSO READ: First clinical trial for potential COVID-19 vaccine in Canada approved

Trudeau also says an additional $100 million will go to the Red Cross to help deal with COVID-19, floods and wildfires.

The Canadian Press

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