Air Canada to begin cancelling flights ahead of possible work stoppage on Saturday

Travellers say they are bracing for uncertainty as Air Canada prepares to gradually suspend flights ahead of a potential work stoppage on Saturday.

The airline said the first flights will be cancelled Thursday, with more on Friday and a complete cessation of flying by Air Canada and Air Canada Rouge by the weekend if it doesn’t reach a last-minute deal with the flight attendants’ union.

The Air Canada component of the Canadian Union of Public Employees, which represents around 10,000 Air Canada flight attendants, issued a 72-hour notice of its intent to strike just before 1 a.m. on Wednesday. Half an hour later, Air Canada issued a notice that it also plans to lock out the flight attendants.

That means a work stoppage would officially take effect Saturday around 1 a.m. ET if the two sides don’t reach an eleventh hour deal.

Passengers on the move Wednesday said they were worried about potential disruptions to the return portion of their itineraries if the two sides don’t resolve their contract dispute in the meantime.

“I’m glad we’re getting out today … We’re due back in two weeks so we’ll have to see what happens,” said Candace Tidy, who was travelling from Toronto to Halifax for vacation.

“I’m hoping that if it’s still on strike they’ll offer us some alternate ways to get home.”

Air Canada said customers whose flights are cancelled will be notified and they will be eligible for a full refund.

The company also said it has made arrangements with other Canadian and foreign carriers to provide customers alternative travel options “to the extent possible.” That includes passengers whose itineraries change mid-journey.

Air Canada added it is also implementing a flexible rebooking policy for all customers so they can change or defer travel at no additional cost.

“If they can’t offer us an alternative, we’ll have to figure out what we’re going to do, but hopefully they can help us get home,” said Tidy.

Air Canada Express flights operated by Jazz and PAL Airlines will continue to operate as normal, as flight attendants working under those banners are not part of the negotiations at hand.

Bargaining update

On Tuesday, Air Canada said it had reached an impasse with the union.

“We regret the impact a disruption will have on our customers, our stakeholders and the communities we serve,” said Air Canada president and CEO Michael Rousseau in a statement.

He said the union’s intent to launch a strike “puts us in a position where our only responsible course of action is to provide certainty by implementing an orderly suspension of Air Canada’s and Air Canada Rouge’s operations through a lockout.”

“As we have seen elsewhere in our industry with other labour disruptions, unplanned or uncontrolled shutdowns, such as we are now at risk of through a strike, can create chaos for travellers that is far, far worse,” Rousseau said.

The union has said its main sticking points revolve around what it calls flight attendants’ “poverty wages” and unpaid labour when planes aren’t in the air.

Its members voted 99.7 per cent in favour of a strike mandate last week. Talks later resumed, with both sides expressing optimism they could reach a deal in time to avoid a work stoppage.

But on Tuesday, Air Canada said the two sides were “far apart” on key issues and the union told its members that the company “decided they no longer want to negotiate.”

“Despite our best efforts, Air Canada refused to address our core issues,” the union said in a bargaining update post online.

Alternatives to work stoppage

The union rejected a proposal from the airline to enter a binding arbitration process, saying it prefers to negotiate a deal that its members can then vote on. It has said that unlike with a tentative agreement reached through negotiations, members would not get a chance to vote on an arbitrator’s decision, which would be final.

The union also said arbitrators “rely on precedent and the status quo to make their determinations,” which runs counter to its objectives in bargaining talks.

Air Canada has said it is looking into its remaining options, including a request for government-directed arbitration “to prevent a disruption or at least remove this intolerable uncertainty for our customers.”

Federal Jobs Minister Patty Hajdu said in a statement she has been meeting with Air Canada and its flight attendants throughout the negotiations, including on Tuesday.

“I am closely monitoring the situation and encourage both parties to stay at the table until a deal is found,” she said.

“Federal mediators will remain available until a deal is reached. The best agreements are the ones the parties reach themselves. Canadians expect them to reach a deal one way or another.”

Compensation options

The airline has cautioned that under Canada’s Airline Passenger Protection Regulations, customers are not eligible for compensation for delayed or cancelled flights, meals, hotels for situations outside the carrier’s control, such as a strike or lockout.

However, Air Canada is responsible for its decision to “pre-emptively” cancel flights in anticipation of a strike or lockout that has not yet started, said Air Passenger Rights advocacy group president Gabor Lukacs in an online post.

He called that a “business decision over which Air Canada has full control, and it is not required for safety reasons.”

He said passengers whose flight have been cancelled Thursday or Friday before the work stoppage is in effect must be provided a choice between two options.

The first option is being rebooked, free of charge, on the next available flight operated by any carrier including Air Canada’s competitors, along with meals, overnight accommodation and cash compensation depending on the length of delay experienced.

Alternatively, Lukacs said the airline must offer such passengers a refund within 30 days, plus compensation of up to $400 per passenger for their inconvenience.

“Do not agree to Option 2 if what you really want is to continue travelling, because Option 2 allows the airline to wash its hands of further responsibility for your travel,” he said.

“It often costs more to book a flight the closer it gets to the travel date. Accepting a refund and rebooking on your own will often make you out of pocket.”

— With files from Maan Alhmidi in Mississauga, Ont.

This report by The Canadian Press was first published Aug. 13, 2025.

Companies in this story: (TSX:AC)

Sammy Hudes, The Canadian Press