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17 August 2025

Air Canada Flights Resume After Strike Disrupts Travel

A government order ends a nationwide walkout by flight attendants, but tensions over pay and labor rights remain unresolved as operations slowly return to normal.

Travelers across Canada and beyond found themselves stranded and frustrated this weekend as Air Canada’s flight attendants staged a dramatic strike, prompting swift government intervention that sent ripples through the nation’s transportation sector and reignited debates over workers’ rights, corporate responsibility, and the role of federal power in labor disputes.

The turmoil began on August 16, 2025, when more than 10,000 Air Canada flight attendants, represented by the Canadian Union of Public Employees (CUPE), walked off the job around 1 p.m. EDT. The immediate impact was staggering: over 700 flights were canceled, and approximately 130,000 travelers each day faced disrupted plans, according to the Associated Press and CBC News. The shutdown, which included Air Canada Rouge flights, left an estimated 25,000 Canadians stranded and countless international passengers scrambling for alternatives during the busy summer travel season. Flights operated by Air Canada Express, run by Jazz and PAL, were not affected, offering a small reprieve amid the chaos.

Within hours, the federal government stepped in. Jobs Minister Patty Hajdu, citing the economic stakes and the “incredible dependency of Canadians” on air travel, ordered Air Canada and its flight attendants back to work and into binding arbitration. “Canadians rely on air travel every day, and its importance cannot be understated,” Hajdu said, referencing the additional strain of recent U.S. tariffs on Canada and the potential for wider economic fallout. She noted, “The talks broke down. It is clear that the parties are not any closer to resolving some of the key issues that remain and they will need help with the arbitrator.”

The Canada Industrial Relations Board (CIRB) was directed to extend the terms of the collective agreement that had expired on March 31, 2025, until a new contract is reached. Air Canada announced plans to resume flights on the evening of August 17, though it warned that full operations could take up to a week to restore. Chief Operating Officer Mark Nasr acknowledged that disruptions would persist for days, as the airline worked to rebook passengers and coordinate with other carriers—no small feat, given that many flights were already full due to peak travel demand.

The union’s response was swift and scathing. CUPE, which had been in contract talks with Air Canada for about eight months without reaching a tentative deal, denounced the government’s rapid intervention. “The Liberal government is rewarding Air Canada’s refusal to negotiate fairly by giving them exactly what they wanted,” said Wesley Lesosky, president of the Air Canada component of CUPE, in a statement carried by CBC News and the Associated Press. CUPE argued that the forced arbitration violated the flight attendants’ constitutional right to strike and set a “terrible precedent” for future labor disputes. “We’re on the picket lines until further notice,” added union spokesman Hugh Pouliot, as CUPE called for a national day of action with demonstrations at major airports in Toronto, Montreal, Vancouver, and Calgary.

At the heart of the dispute were wages and working conditions. Flight attendants said their pay had lagged behind inflation over the previous decade, and they took issue with unpaid labor during times when planes are not in the air. Natasha Stea, a local union president and Air Canada flight attendant, expressed the frustration many felt: “We are heartbroken for our passengers. Nobody wants to see Canadians stranded or anxious about their travel plans, but we cannot work for free.” She also highlighted gender disparities, noting that while pilots—mostly men—received significant raises last year, the largely female flight attendant workforce felt left behind.

Air Canada, for its part, insisted that it had made a generous offer: a 38% increase in total compensation, including benefits and pensions, over four years. The union countered that the proposed 8% raise in the first year was insufficient, given the soaring cost of living. Lesosky did not mince words, saying at a news conference, “We’re the national carrier and we have people operating in poverty. Like, that’s disgusting, that’s very problematic.”

The government’s decision to intervene was not without precedent. Ian Lee, associate professor at Carleton University’s Sprott School of Business, noted that such interventions have occurred frequently in Canadian transportation history—45 times since 1950, by his count. “They will intervene to bring the strike to an end. Why? Because it has happened 45 times from 1950 until now,” Lee explained, emphasizing the country’s vast geography and the essential nature of air travel for Canadians. Last year, a similar move was made during a rail workers’ strike, though the union involved is now suing, arguing that the government’s actions undermine labor’s leverage.

Business leaders largely welcomed the government’s move. The Business Council of Canada had urged binding arbitration, and the Canadian Chamber of Commerce applauded the intervention. “With valuable cargo grounded and passengers stranded, the government made the right decision to refer the two sides to binding arbitration,” said Matthew Holmes, executive vice president of the Chamber. He warned that nearly a million Canadians and international visitors could be impacted if Air Canada took a week to return to full operations.

For passengers caught in the middle, the experience was nothing short of exasperating. Jean‐Nicolas Reyt, an associate professor at McGill University, found himself in Cannes, France, with little information from Air Canada about his upcoming flight to Montreal. “What’s stressful is to not hear anything from Air Canada,” Reyt told the Associated Press. “I’m just very surprised that Air Canada let it go this far. It’s really a bit disheartening that they fly you somewhere abroad and then they just don’t fly you back.” Jennifer MacDonald of Halifax shared a similar story, recounting how her brother and cousin were forced to pay for a hotel and scramble for new flights after their trip was upended. “It will be a multiday ordeal and a multi-thousand-dollar trip,” she said, though she added her family ultimately supported the flight attendants’ cause: “We hope that Air Canada lifts the lockout and negotiates fairly.”

Air Canada has promised that customers whose flights were canceled and who did not travel or accept a refund will be notified and provided with new itineraries. The airline also said passengers could request full refunds or seek alternative travel options, though it warned that immediate rebooking might not be possible due to high demand.

As both sides prepare to return to the bargaining table this week under the watchful eye of an arbitrator, the outcome remains uncertain. The events of this weekend have not only disrupted travel but have also reignited questions about workers’ rights, government intervention, and the future of labor relations in Canada’s critical transportation sector.

The dust has not yet settled for travelers or for those on the picket lines. But one thing is clear: the issues at stake—fair pay, economic stability, and the right to strike—are far from resolved, and their resolution will shape the future of Canadian air travel for years to come.