Air Canada Cuts Flights Following Failed Talks with Flight Attendant Union

Air Canada has recently announced a 72-hour lockout notice directed at the Canadian Union of Public Employees (CUPE), which represents around 10,000 flight attendants. This decision comes after the union expressed its intent to initiate a strike.

On August 13, 2025, Air Canada stated that it would gradually wind down most of its operations, with completion expected within three days. To address the situation, the airline has also sought government-led arbitration.

The Impact of the Strike on Daily Passengers

“We regret the potential disruption and its effects on our customers, stakeholders, and the communities we serve. As seen in similar labor disruptions, an unplanned strike could lead to extreme inconvenience for travelers,” stated Michael Rousseau, President and CEO of Air Canada.

Air Canada and Air Canada Rouge transport approximately 130,000 passengers each day, which includes 25,000 Canadians returning home from international destinations. However, flights under Air Canada Express, operated by Jazz and PAL Airlines, will continue as scheduled.

Stalemate in Negotiations

The airline noted that contract discussions with CUPE have “reached a stalemate,” despite presenting an improved job offer.

Air Canada expressed belief that no further progress could be made after the union countered with demands considered “exorbitant” and declined the company’s proposal for binding third-party arbitration.

The revised contract proposed on August 11, 2025, included a 38% total compensation increase over four years, with a notable 25% raise in the first year. It also sought to improve ground pay, enhance pensions and benefits, and increase crew rest, all aimed at providing a better work-life balance.

Discrepancies Over the Contract Offer

While Air Canada asserted that its new contract would make flight attendants “the best compensated in Canada,” CUPE disagreed strongly. The union criticized the airline’s recent offer, claiming it falls “below inflation, below market rates, and below minimum wage.”

“Despite being presented with the so-called ‘best offer,’ a full-time entry-level Air Canada flight attendant would still earn less than the federal minimum wage,” the union emphasized in a statement on August 12, 2025.

If the 72-hour lockout notice remains in effect, operational disruptions could commence as early as August 16, 2025.