Air Canada says negotiations with the Canadian Union of Public Employees (CUPE), representing 10,000 flight attendants at Air Canada and Air Canada Rouge, have reached an impasse, putting the parties in a position to issue a 72-hour strike or lockout notice at 12:01 a.m. ET on August 13.
A work stoppage could begin as early as August 16.
The airline said CUPE submitted a counteroffer seeking higher wage increases than in previous proposals and rejected Air Canada’s offer to enter binding third-party arbitration.
RELATED: Air Canada Flight Attendants Vote Overwhelmingly in Favour of Strike
“Air Canada has been negotiating with CUPE for eight months and although we have settled many items, none of which required concessions, we remain far apart on key issues,” said Arielle Meloul-Wechsler, executive vice president, chief human resources officer and public affairs.
“We are disappointed our proposal to resolve the outstanding items fairly through arbitration has been rejected by the union and it is instead insisting on unsustainable wage increases.”
RELATED: Air Canada Flight Attendants’ Contract Struggle Continues
Air Canada said it will ask the federal government to refer the dispute to binding arbitration under section 107 of the Canada Labour Code, citing recent government interventions in other transportation labour disputes.
On August 11, the airline offered a four-year deal with a total compensation increase of 38%, including a 25% increase in the first year.
The proposal also included changes to address ground pay, improved pensions and benefits, increased crew rest, and measures to improve work-life balance.
RELATED: Air Canada Flight Attendants Stage Pickets, Airline Issues Q&A for Passengers
Air Canada said the offer sought no concessions and would make its flight attendants the highest compensated in Canada.
If a strike occurs, Air Canada Express flights operated by Jazz and PAL Airlines would continue, but these services carry only about 20% of the airline’s daily passengers.
Air Canada and Air Canada Rouge carry about 130,000 customers daily, including approximately 25,000 Canadians returning from abroad who could be affected.
The airline has arrangements with other carriers and Via Rail for alternative travel, but said capacity is limited during the peak summer season.
Air Canada posted the following statement on it website on August 12:
“Negotiations with our flight attendants’ union are continuing. While there is no immediate impact to operations, there is a possibility of disruption to travel beginning August 16, 2025.
If you are booked to travel between August 15 and August 18 and would like to make alternate travel arrangements, you can change your flight for free if:
- You purchased an Air Canada ticket or redeemed points for an Aeroplan flight reward no later than August 13, 2025
If you’re scheduled to travel during this period, you can retrieve your booking to change your flight, for free, to another date:
- between August 21 and September 12, 2025
If your flight is cancelled, we will do our very best to rebook you on the first available flight, exploring options with over 120 international and domestic carriers. As we are in peak summer travel season, we know that space will still be very limited. If your travel is disrupted, you can always choose a refund.
We appreciate your patience while we work to get you on your way.
Rest assured that we will notify you of any impact to your flight itinerary in advance of your travel. Below you’ll find more information related to your options, who to contact, and what you’re entitled to with respect to regulatory compensation.
If you purchased your ticket with Air Canada Vacations, please reach out to them directly. Please also review our FAQ section for other rebooking options and more essential information. Note that wait times may be longer than expected as we work to assist customers.”
Air Canada advised customers not to go to the airport without a confirmed booking showing as operating, and warned of longer contact centre wait times.
Under Canada’s Airline Passenger Protection Regulations, passengers are not entitled to compensation for expenses related to delays or cancellations caused by a labour disruption.
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