Mark Nasr, Executive Vice President and Chief Operations Officer at Air Canada, said: “Air Canada’s 40,000 coworkers, with their exceptional commitment and expertise, have allowed us to restore operations ahead of plan. We now expect to be operating very close to our normal schedule tomorrow. We deeply apologize to all customers whose travel plans were disrupted, and we’re committed to making things right for all customers — particularly those who were stranded during their trip.”
The tentative agreement was reached after 225 days of bargaining. It includes a 12% salary increase for most flight attendants this year and an 8% raise for senior staff. Other terms such as pensions, retirement bridging, health benefits, and vacation are already finalized. All flight attendants would receive a further 3% raise in 2026, followed by increases of 2.5% in 2027 and 2.75% in 2028. The ratification vote is scheduled from August 27 through September 6.
If approved by members of the Air Canada Component of the Canadian Union of Public Employees (CUPE), which represents over 10,000 flight attendants at Air Canada and Air Canada Rouge, the agreement would run until March 2029. The new contract also addresses concerns about unpaid work while planes are on the ground.
CUPE members have been based at major Canadian airports for decades and have a long history dating back to the late 1940s when employees established their own unions. In 1948 they formed the Canadian Air Line Flight Attendants' Association; one year later they signed their first collective bargaining agreement as transpacific routes opened.
Air Canada's financial performance in the second quarter of 2025 showed a modest improvement despite recent disruptions. On July 28, Air Canada reported a two percent increase in operating revenues with income reaching $418 million for the quarter. Growth was attributed partly to strong results from subsidiaries such as Air Canada Cargo and Aeroplan under its diversified business structure.
Looking ahead, Air Canada plans an increase in available seat miles (ASM) capacity between approximately three and four percent compared with the same quarter last year. Despite recent service disruptions and reduced cross-border traffic due to political tensions affecting U.S.-Canada travel demand—a trend noted by BNN Bloomberg—the airline remains optimistic about future growth targets including an aim for annual revenue above $30 billion by decade's end.
Mark Galardo, chief commercial officer at Air Canada said: “this second quarter was not business as usual,” according to BNN Bloomberg reporting. Shares experienced volatility but ended the quarter neutral according to Bloomberg analysts.
Air Canada's strategy anticipates modest economic growth across Canada through at least 2028 as part of its business plan.
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