TORONTO (CP) A massive restructuring at American Airlines, a bankruptcy filing by US Airways and a poor forecast for North American airline traffic this fall are taking their toll on several aviation companies and airlines in Canada. Shares in airline product and service suppliers such as Bombardier and CAE Inc. took a nosedive Tuesday, while carriers such as Air Canada and WestJet were also unable to escape the market turbulence. In CAEs case, all the signals that are coming out of the U.S. indicate that some airline traffic may not pick up, and as a result, training for pilots may be reduced, said Jacques Kavafian, director of research at Octagon Capital in Toronto. CAE, which makes flight simulators and trains commercial airline pilots, paid dearly Tuesday for whats happening south of the border. Its stock (TSX:CAE) dropped 15.1 per cent, or $1.07, to close at a new 52-week low of $6.02 on the Toronto Stock Exchange. However, Kavafian said he disagrees with the U.S. gloom. A lot of it has to do with seasonality, he said. American Airlines, for example, announced Tuesday it is cutting 7,000 jobs and cutting its capacity by nine per cent. Theyll be reducing their capacity versus peak summer months. . . They do it every year, he said, adding that CAE current stock price could present a great bargain. Montreal-based transportation giant Bombardier (TSX:BBD.B) is also hurting due to the airline woes in the United States, and other concerns including U.S. rail giant Amtrak suspending its Acela Express trains, built by Bombardier and its partner Alstom, over locomotive problems. But Bombardiers problems with Amtrak are overshadowed by the airline situation, Kavafian said. Not only is Bombardier being squeezed on the rails, its also got fewer buyers for its airborne products, as carriers retire jets to scale down capacity, rather than purchase new ones. Bombardiers stock lost 9.6 per cent on the TSX on Tuesday, falling 96 cents to a new 52-week low of $9.04 in heavy trading of nearly 12 million shares. But Kavafian said that in the next six months, he expects the total number of people who fly to increase. Air Canadas stock (TSX:AC) crashed as well, falling about 10 per cent this week so far in the wake of a bankruptcy filing Sunday by US Airways.