Air Canada strike chaos: 500 flights cancelled daily, 130,000 passengers affected  

Air Canada is haemorrhaging tens of millions of dollars each day as a strike by over 10,000 flight attendants, initiated by the Canadian Union of Public Employees (CUPE), has led to the cancellation of approximately 500 flights daily, affecting around 130,000 passengers. 

The airline, Canada’s largest carrier, began a phased shutdown of operations on August 14, with a complete cessation of Air Canada and Air Canada Rouge flights expected by August 16 due to a bitter labor dispute centred on wages and unpaid work. 

Air Canada’s decision to lock out its cabin crew and suspend operations is costing the airline an estimated tens of millions of dollars per day in lost revenue, with broader economic ripple effects on tourism and related industries.

The precise figure varies, but industry analysts suggest daily losses could exceed C$50 million ($40 million), factoring in grounded flights, refunds, and rebooking costs. 

It also highlights the potential for millions in tourism revenue losses, underscoring the strike’s broader economic toll.

The strike has grounded approximately 500 flights per day, with 34 cancellations reported on August 14, impacting 7,946 passengers, and an additional 19 cancellations affecting 3,145 passengers due to unplanned crew shortages. 

By August 16, Air Canada expects a complete halt of its mainline and Air Canada Rouge operations, affecting 130,000 daily passengers, including 25,000 Canadians returning from abroad. 

Air Canada Express flights, operated by Jazz and PAL, remain unaffected, covering about 20% of the airline’s capacity. 

Passengers face limited rebooking options due to peak summer travel, with Air Canada arranging alternatives through Star Alliance partners like United or other carriers like British Airways, Air Transat, or WestJet. 

Customers are eligible for full refunds if alternative arrangements cannot be made. 

The strike stems from a breakdown in contract negotiations that began in March 2025, following the expiration of a 10-year collective agreement.

CUPE, representing over 10,000 flight attendants, demands wages that match industry standards, keep pace with inflation, and compensate for unpaid duties such as boarding, safety checks, and deplaning. 

Currently, flight attendants are paid only for “block hours” – time from gate departure to arrival – leaving significant ground work uncompensated. 

The union cites entry-level wages starting at C$27,000, which have risen just C$ 3 per hour since 2000, despite a nearly 70% increase in average prices over the same period. 

CUPE rejected Air Canada’s offer of a 38% pay increase over four years, arguing it falls below inflation and market value, with some describing it as below minimum wage standards. 

A 99.7% strike mandate from union members reflects deep frustration with these conditions.

Air Canada has a history of contentious labour disputes. In 2011, customer service agents struck for three days over pension and wage issues, leading to flight disruptions until the Canadian government intervened with back-to-work legislation. 

In 2012, pilots briefly picketed over contract disputes, though a strike was averted. More recently, in September 2024, Air Canada faced a potential pilots’ strike, with the airline preparing to wind down operations before reaching a last-minute agreement.

These recurring labour tensions highlight ongoing challenges in balancing employee demands with the airline’s financial pressures, often exacerbated by government intervention to protect the economy.

Air Canada has urged the Canadian government to intervene under Section 107 of the Canada Labour Code, requesting binding arbitration to resolve the dispute and avoid further disruptions. 

The airline points to past government actions in rail, port, and airline disputes as precedent.

However, Prime Minister Mark Carney, leading the Liberal Party, has not yet committed to intervention, leaving the airline and union to negotiate. This stance contrasts with historical government actions, such as the 2011 back-to-work order, suggesting a cautious approach to balancing labor rights and economic stability.