Strong dollar piles further pressure on Air Canada and Volaris

Moves by non US Americas airlines to shore up their business in the face of plummeting passenger demand have been dealt a further blow by a stronger US dollar, according to analysts Cowen. Air Canada,  and Mexican LCC Volaris have all announced significant moves to reduce to flight capacity and reduce headcount – either temporarily or permanently – in recent weeks. But with the flight to safety among global investors driving the Greenback up against most major currencies and the majority of carriers’ costs being dollar denominated, FX headwinds present an additional problem for airlines in cash conversation mode say Cowen.