Air Canada announced it is adjusting its network under its COVID-19 Mitigation and Recovery Plan by further reducing first quarter system capacity by an additional 25%. As a result of these system-wide changes, there will be a workforce reduction of approximately 1,700 employees, in addition to the over 200 impacted employees at their Express carriers. The airline is working with its unions on mitigation programs. Air Canada will be reducing approximately 25% of its planned capacity for the balance of the first quarter of 2021. With this reduction, capacity in the first quarter of 2021 will be about 20% of what Air Canada operated in the first quarter of 2019. Air Canada will continue to evaluate and adjust its route network as required in response to the trajectory of the pandemic, government-imposed travel restrictions and quarantines, and to market and regulatory conditions. Affected customers on all routes will be contacted by Air Canada and offered options, including refunds for eligible customers and alternative routings where available.