Air Canada is cutting about 400 non-union management positions, roughly one percent of its total workforce, as part of a company-wide restructuring effort aimed at streamlining operations.

In a statement to CBC News, Christophe Hennebelle, Air Canada’s vice-president of corporate communications, said the airline reached the “difficult decision” to reduce some roles following an “extensive review.”

“Air Canada regularly reviews its resources and processes to ensure they are optimized to efficiently support business operations and its customers,” Hennebelle said.

He emphasized that the job reductions will not affect day-to-day operations, but declined to clarify whether the cuts would occur through attrition, layoffs, or by leaving vacancies unfilled.

Expansion at Toronto’s Billy Bishop Airport

The job cuts coincided with Air Canada’s announcement of a major expansion at Toronto’s Billy Bishop Airport, signaling renewed competition with Porter Airlines, which has long dominated the island hub.

The airline plans to add 10 new daily flights to four U.S. destinations — New York, Boston, Chicago, and Washington, D.C. — along with two new flights to Ottawa and one to Montreal.

The U.S. routes are set to begin in the spring, while the domestic additions will launch in January. Air Canada currently operates eight daily flights to Montreal and four to Ottawa from the island.

“This is our most significant expansion at Toronto Island since Air Canada first served the airport 35 years ago,” said Mark Galardo, the airline’s executive vice-president and chief commercial officer.

Renewed Competition in Canada’s Airline Market

The expansion marks a fresh chapter in Canada’s growing airline rivalry, with Air Canada taking direct aim at Porter’s established U.S. routes from Billy Bishop. Meanwhile, WestJet and Flair Airlines continue to compete aggressively in the low-cost segment.

Most of Air Canada’s domestic and international flights still operate from Toronto Pearson International Airport, but the expansion suggests the carrier’s strategy to strengthen its downtown Toronto presence.

The airline is scheduled to release its third-quarter results on November 5, which may provide further insight into the company’s cost-cutting and growth strategy.