Airlines Canada

Air Canada only emerged from its last round of bankruptcy protection in 2004. But the economic crisis has hammered most international carriers as traffic has dropped, forcing them to cut routes, reduce capacity and lay off employees.

Air Canada last year cut 2,000 jobs and reduced capacity by 7 percent and has made more cuts since.

Chief Executive Montie Brewer said on Friday -- as Air Canada announced an unexpectedly large loss of CAD$727 million for the fourth quarter of last year -- that the airline would seek to reduce costs by another CAD$100 million and shave capacity by a further 3.5 percent.

The company said on Friday it has shored up its balance sheet with CAD$641 million in new financing, but warned that the recession may put more pressure on its revenue in 2009. Air Canada said it has up to CAD$1 billion of assets it could use to increase its liquidity if needed.