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Air Canada's recovery hampered as cabin crew continue strike despite legal order

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Air Canada's recovery hampered as cabin crew continue strike despite legal order
Policy
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Michael Rousseau, President and Chief Executive Officer | Air Canada

Air Canada is facing ongoing operational challenges after cabin crew members defied a return-to-work order, following a strike that began last week. The labor action was initiated by approximately 10,000 flight attendants represented by the Canadian Union of Public Employees (CUPE), who expressed dissatisfaction during wage negotiations with the airline.

The Canadian Industrial Relations Board (CIRB) declared the strike unlawful and ordered union leaders to instruct their members to resume work. Despite this directive, CUPE leadership reportedly told striking members to continue their industrial action. The CIRB responded by requiring CUPE to publicly notify its members by noon on August 18 that it had revoked its authorization of strike activities and that all members were required to return to duty.

"Air Canada’s intended restart of Air Canada and Air Canada Rouge, which have been grounded since August 16 by CUPE’s labour disruption, was prevented on August 17 by the CUPE leadership’s unlawful strike activities. The airline now estimates that 500,000 customers’ flights have been cancelled as a result."

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The disruption has led Air Canada to suspend both its third-quarter and full-year financial guidance for 2025. According to data from Flight Aware, the airline experienced significant delays and cancellations: on Friday, there were 196 delayed flights (30%) and 201 canceled flights (31%), with cancellations increasing over the weekend—597 on Saturday and 606 on Sunday. As of today, there have been an additional 551 cancellations at Air Canada and another 131 at Air Canada Rouge.

A statement from Air Canada said the company "regrets this impact on its customers and is fully committed to returning to service as soon as possible." While mainline operations remain largely suspended, regional services operated under Air Canada Express by Jazz or PAL are continuing as normal.

Flight tracking data shows only two mainline widebody aircraft airborne at midday August 18: a Boeing 787-9 Dreamliner operating from Tokyo Narita Airport to Toronto Pearson International Airport (flight AC7075), and an Airbus A330-300 flying from Frankfurt Airport to Toronto (flight AC7071). Other active flights are limited to regional routes within Canada or between Canada and the United States.

Previously, in its Q2 results released July 28, Air Canada projected an increase in available seat mile capacity between 3.25% and 3.75% for Q3 compared with the same period in 2024. However, due to ongoing disruptions caused by labor actions—including widespread flight suspensions—the airline has withdrawn these forecasts while it assesses operational impacts.

Air Canada's primary hubs include Montréal–Trudeau International Airport, Toronto Pearson International Airport, and Vancouver International Airport. The carrier is part of Star Alliance; Michael Rousseau serves as CEO.

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