Air Canada's reason for canceling flights prior to a potential workers' strike.
Air Canada has taken the unprecedented step of preemptively cancelling flights, beginning on Thursday, as a result of an ongoing labor dispute with its flight attendants' union, the Canadian Union of Public Employees (CUPE). The strike, initiated by over 10,000 flight attendants, has disrupted operations and affected hundreds of thousands of passengers during the peak summer travel season.
The airline's decision to suspend nearly all Air Canada and Air Canada Rouge flights is a proactive measure aimed at managing operations amid uncertainty and avoiding passenger congestion at airports. The move comes after the Canadian Industrial Relations Board (CIRB) ordered the flight attendants to resume duties, but CUPE has yet to comply.
The strike, triggered by unresolved disputes over pay, working conditions, and demands for fair compensation, has led to a labor disruption starting mid-August 2025. Passengers are advised not to go to airports without confirmed rebooking due to cancellations and limited capacity for rebooking across carriers.
Air Canada is facing significant financial losses and disruptions in service due to the strike and work stoppage. The airline is under pressure to avoid larger chaos and comply with labor and government regulations impacting negotiations. The Canadian government has stepped in to enforce binding arbitration to stabilize the situation, temporarily extending existing agreements and attempting to limit economic harm due to travel disruptions.
If a passenger refuses the refund offered by Air Canada, they are not obligated to accept it. In such cases, Air Canada owes compensation for the alternate transportation costs if they fail to provide it. However, if a passenger accepts the refund, Air Canada may argue they no longer owe alternate transportation.
Air Canada is working with Canadian and foreign airlines to arrange alternative travel for its passengers. Mark Nasr, Air Canada COO, stated that this approach will help limit the strike's impact and facilitate an orderly restart. The gradual, preemptive shutdown is intended to save passengers from last-minute stress.
By the end of Thursday, several dozen cancellations are expected, with around 500 cancellations forecasted by the end of Friday. Air Canada plans to pause all flight operations by Saturday. The airline is in talks with CUPE to resolve the ongoing dispute and resume normal operations.
[1] CBC News. (2025, August 12). Air Canada cancels flights amid labour dispute with flight attendants. Retrieved from https://www.cbc.ca/news/business/air-canada-flight-attendants-strike-1.6125946
[2] Global News. (2025, August 12). Air Canada cancels flights as flight attendants union issues strike notice. Retrieved from https://globalnews.ca/news/8794391/air-canada-flight-attendants-strike-notice/
[3] The Globe and Mail. (2025, August 12). Air Canada cancels flights as flight attendants union issues strike notice. Retrieved from https://www.theglobeandmail.com/business/air-canada-cancels-flights-as-flight-attendants-union-issues-strike-notice/article39902835/
[4] Yahoo Finance. (2025, August 12). Air Canada cancels flights amid labour dispute with flight attendants. Retrieved from https://finance.yahoo.com/news/air-canada-cancels-flights-amid-labor-dispute-with-flight-attendants-165900013.html
