AIRLINES RECEIVE DOWNGRADE

Canada’s largest airlines will burn through cash as they endure a long recovery for the industry, S&P Global Ratings said as it downgraded Air Canada and Westjet Airlines Ltd. Air Canada won’t see revenue and capacity return to last year’s levels until 2023, S&P said in an analysis that led to a one-notch downgrade to BB-. It kept its outlook negative. Revenue at the Montreal-based carrier is expected to fall 50 per cent to 60 per cent and it could lose as much as $800 million in EBITDA earnings this year. About 70 per cent of the airline’s passenger revenue comes from routes to the U.S. and overseas. Westjet is more focused on domestic travel, which will likely recover before international routes. But the Calgary-based airline has a different problem: its exposure to the depressed economy of Western Canada.