Air Canada, the nation’s largest airline, is facing a turbulent weekend as it grapples with a looming strike by its 10,000 flight attendants, triggering hundreds of flight cancellations and upending travel plans for tens of thousands of passengers. The dispute, which centers on pay and compensation for work performed outside of actual flight time, threatens to disrupt not only domestic travel but also international journeys, with ripple effects across the Star Alliance network.
The trouble began in earnest earlier this week when Air Canada’s flight attendants, represented by their union, rejected the airline’s proposed compensation package. According to The New York Times, Air Canada had offered a 38% raise over four years, including a hefty 25% increase in the first year. The airline claimed this would make its flight attendants the highest paid in Canada. Nevertheless, the union wasn’t satisfied, citing long-standing grievances about pay for duties performed before takeoff and after landing—tasks for which flight attendants have historically not been compensated, despite recent adjustments at some U.S. carriers like Delta and American.
In response to the standoff, the union issued a 72-hour strike notice, setting the stage for a potential walkout at midnight on Saturday, August 16, 2025. Air Canada, anticipating the disruption, began canceling flights as early as Thursday, August 14, axing 34 flights that day. By midday Friday, the scale of the crisis had ballooned, with 294 flights canceled and more than 55,000 travelers left scrambling for alternatives, as reported by Yahoo News Canada.
The airline warned that the pain could spread much further. "Air Canada and Air Canada Rouge carry approximately 130,000 customers a day who could be affected by a disruption, this includes the 25,000 Canadians that the airline flies home from abroad each day, who could be stranded," the company said in a statement. The magnitude of the potential chaos is hard to overstate, especially during the busy summer travel season, when seats on alternative flights are already at a premium.
Not all travelers are equally affected, however. According to The New York Times, regional flights operated under the Air Canada Express banner—run by Jazz Aviation and PAL Airlines—are insulated from the strike, as they are subcontracted to smaller carriers. These regional services account for about 300 of Air Canada’s 1,000 daily flights, offering a partial reprieve for passengers flying to smaller Canadian destinations.
But for those booked on Air Canada’s mainline routes or its low-cost subsidiary, Air Canada Rouge, the outlook is bleaker. The airline is part of the Star Alliance, a global network that includes more than 20 partner carriers such as Lufthansa and United Airlines. That means disruptions could spill over to code-shared flights, potentially affecting travelers who may not even realize their itinerary involves Air Canada. Passengers are being urged to double-check their flight status, even if their ticket was booked through another airline.
For those caught in the crossfire, Air Canada has laid out several options. Passengers whose flights are canceled can request a full refund through the airline’s app or website. The company is also attempting to rebook travelers on other airlines, though the sheer volume of cancellations and the high demand for seats mean availability is limited. Customers with flexible travel plans can change their dates and receive a one-time $50 credit per passenger, or opt for an airline credit equal to the value of their ticket, valid for one year. Importantly, travelers who booked their flights before August 14 for travel between August 15 and 18 can rebook for dates from August 21 onward at no additional cost.
Still, many travelers may find themselves looking to WestJet, Canada’s second-largest carrier, for a way out. A spokeswoman for WestJet told The New York Times that the airline is "monitoring the negotiations and will support Canadians wherever possible." However, WestJet’s network is significantly smaller than Air Canada’s, especially on international routes, and the carrier’s ability to absorb the flood of displaced passengers is limited.
For those considering travel insurance as a safety net, the answer is: it depends. Some policies cover trip cancellations due to labor disputes, but the fine print varies widely. Travelers are advised to review their coverage carefully, as some plans may only reimburse up to a certain amount, and not all strike-related disruptions are included.
The financial toll on Air Canada is expected to be steep. Former Air Canada executive John Graduk, speaking to Yahoo News Canada, estimated the airline could lose at least $50-60 million in revenue for every day the strike continues. "A strike will cost them $50-60 million a day in lost revenue. At least $50-60 million. So this is not trivial, this is a significant amount of revenue lost," Graduk said. He added, "The margins in the business are not great so after a four or five day strike and the loss of that revenue and the loss of trust and reputation that Air Canada [will suffer] in the marketplace, I'm pretty sure Air Canada will come back to the table pretty quickly."
As for how long the disruption might last, there’s no clear answer. Labor actions of this scale are unpredictable. For context, a similar strike by Spirit Airlines pilots in the United States back in 2010 lasted five days before a deal was struck. Whether Air Canada and its flight attendants can reach an agreement as swiftly remains to be seen, but with the financial and reputational stakes so high, both sides have plenty of incentive to find common ground.
In the meantime, travelers are left in limbo, anxiously checking their phones for updates and weighing their options. Many are learning firsthand just how interconnected the modern airline industry has become, with disruptions on one carrier quickly reverberating across alliances and borders. For Air Canada, the next few days will be a test not just of its resilience, but of its ability to restore trust and keep Canada’s skies moving.
