Air Canada said Tuesday it plans to eliminate 2,000 jobs and reduce its capacity as the company joins the list of airlines cutting back in the face of higher fuel prices. The country's biggest carrier said it will reduce its overall capacity by seven per cent in the last three months of this year and the first quarter of 2009. The airline said fuel prices have more than doubled over the past year, and that a $1 per barrel increase in the price of oil adds $26 million to its annual fuel bill. Air Canada said fuel is its single biggest expense - accounting for more than 30 per cent of its operating expenses. The company expects its total fuel charge will be $1 billion higher this year than last year. "The loss of jobs is painful in view of our employees' hard work in bringing the airline back to profitability over the past four years," said Montie Brewer, Air Canada's president and CEO. "I regret having to take these actions but they...