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Home Business & Finance

Air Canada Labor Strike Disrupts Travel: Hundreds of Flights Axed Nationwide

Somto NwanoluebySomto Nwanolue
August 16, 2025
in Business & Finance
0
Air Canada Labor Strike Disrupts Travel: Hundreds of Flights Axed Nationwide
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Air Canada has suspended all flights, including its Air Canada Rouge budget operations, as more than 10,000 cabin crew members represented by the Canadian Union of Public Employees (CUPE) launched strike action early Saturday.

The airline warned approximately 130,000 daily passengers to avoid airports unless traveling with alternative carriers, with 500 daily flights canceled across Canada’s major hubs including Toronto Pearson (YYZ), Vancouver (YVR), and Montréal-Trudeau (YUL). Only Air Canada Express flights operated by Jazz and PAL Airlines remain unaffected by the labor dispute.

The strike stems from failed negotiations over flight attendant compensation, particularly payment for ground duties like pre-flight boarding. Air Canada’s final offer proposed a 38% total compensation increase over four years, including a 25% first-year raise, but CUPE rejected it as “below inflation and market value.”

Air Canada Labor Strike Disrupts Travel: Hundreds of Flights Axed Nationwide

The union maintains that its members effectively work 35 unpaid hours monthly during mandatory pre-flight preparations. With 99.7% of members voting to strike earlier this month, picket lines have formed at major airports as travelers scramble to rebook flights.

Even before Saturday’s official strike commencement, Air Canada proactively canceled 623 flights affecting over 100,000 passengers. “We deeply regret this disruption,” the airline stated while directing affected customers to its rebooking portal.

The carrier faces mounting criticism for its handling of the crisis, having requested federal binding arbitration rather than continuing direct negotiations—a move CUPE called “union-busting.” Jobs Minister Patty Hajdu had urged both parties back to negotiations but stopped short of imposing arbitration before the strike deadline.

Experts are recommending checking WestJet and Porter Airlines for alternate flights, though capacity remains limited during peak summer travel season. International travelers face particular challenges, as Air Canada serves 180 global destinations with few direct alternatives.

Hotel chains near major airports report waves of cancellations, while car rental agencies face vehicle shortages as grounded passengers seek land transportation options. The Tourism Industry Association of Canada warns prolonged strikes could damage the country’s peak summer tourism revenue.

Why It Matters

With both sides entrenched—CUPE demanding full pay for all work hours and Air Canada citing cost pressures—the strike could persist through August. The government retains authority to impose arbitration under Canada’s Labor Code, though such moves often prolong labor tensions. As negotiations remain stalled, passengers face an uncertain wait for normal operations to resume across Canada’s largest airline network.

Tags: Air Canadafederal characterFlightsForeign NewsgovernmentLabor StrikeNews
Somto Nwanolue

Somto Nwanolue

Somto Nwanolue is a news writer with a keen eye for spotting trending news and crafting engaging stories. Her interests includes beauty, lifestyle and fashion. Her life’s passion is to bring information to the right audience in written medium

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