Air Canada said it will start canceling flights on Thursday and wind down most operations through Saturday after flight attendants issued a 72-hour strike notice and the airline responded with a 72-hour lockout notice, setting up a potential nationwide shutdown at the height of the summer travel season.
The Canadian Union of Public Employees, which represents more than 10,000 cabin crew at Air Canada and Air Canada Rouge, served notice early Wednesday. The union says the dispute centers on wages and compensation for work that is not currently paid, such as boarding and ground duties. Air Canada said it has made arrangements with other carriers and will offer refunds for canceled flights.
The strike could begin as early as 12:58 a.m. ET on Saturday, August 16, after the notice period expires. Air Canada says it plans to cease flying that day if no agreement is reached. The company carries about 130,000 customers daily, so a walkout would have a broad impact on domestic and international routes.
Air Canada has asked Ottawa to intervene, including the possibility of directing both sides to binding interest arbitration. Canada’s Minister of Jobs and Family said she met with both parties and is monitoring the situation while federal mediators remain available.
Air Canada says its latest proposal would raise “total compensation” by 38 percent over four years, including a 25 percent increase in the first year, and would improve pensions, benefits and rest rules. The airline also proposed addressing some ground time compensation.
The union disputes those numbers. CUPE says the company’s offer would lift actual wages by 17.2 percent over four years, which it argues trails inflation and market rates and would still leave many duties unpaid or paid at only half rate. The union says entry-level wages have lagged rising costs for years and that members should be paid for all hours worked, not only when aircraft are moving.
In an earlier step to avoid a shutdown, Air Canada proposed binding arbitration. CUPE rejected that, saying it wants a negotiated agreement that members can vote on.
Air Canada’s travel advisory says customers on affected flights can change their bookings at no cost within a defined window or choose a refund if travel is disrupted. The airline says it is trying to rebook passengers on partner airlines, but space is limited during peak season.
Bargaining began in December 2024. After the parties declared an impasse, federal conciliators joined the talks. On August 11, flight attendants held demonstrations at major hubs. Union leaders say members backed a strike mandate by 99.7 percent.
Air Canada and its Rouge unit account for a large share of transborder and long-haul traffic from Canada. Analysts say a shutdown during peak season would ripple across tourism and trade and test the federal government’s willingness to step in. One remarkable data point underscores the scale: Air Canada and Rouge together carry roughly 130,000 people each day, enough to fill more than 700 narrow-body jets at typical seating layouts.
Both sides say they remain available to negotiate. The distance between them is clear. The airline highlights headline pay and benefits and has sought government-ordered arbitration. The union emphasizes pay for all hours worked and says the current offer still leaves large portions of the job undercompensated. Unless there is a late breakthrough, travelers should expect widespread cancellations beginning Thursday and a near-total halt on Saturday.
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