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18 August 2025

Air Canada Strike Halts Flights As Government Steps In

After a walkout stranded over 100,000 travelers, the Canadian government orders flight attendants back to work and sends the contract dispute to binding arbitration.

Travelers across Canada and around the world found themselves in limbo this past weekend as Air Canada, the country’s largest airline, was forced to halt its operations due to a strike by its flight attendants. The disruption, which began early Saturday, August 16, 2025, quickly stranded more than 100,000 people during one of the busiest travel seasons of the year. However, by Sunday evening, relief was on the horizon as the Canadian government intervened, ordering the 10,000 striking flight attendants back to work and sending the dispute to binding arbitration.

The drama unfolded just after 1 a.m. EDT on Saturday, when flight attendants—members of the Canadian Union of Public Employees (CUPE)—walked off the job after months of contentious contract negotiations. According to NPR, Air Canada responded swiftly by beginning to lock flight attendants out of airports, effectively shutting down the airline’s operations. With Air Canada operating roughly 700 flights per day, the impact was immediate and severe: by Saturday afternoon, 671 flights had been canceled, following 199 cancellations on Friday. Another 96 flights scheduled for Sunday were already suspended, reported the Associated Press (AP).

Federal Jobs Minister Patty Hajdu wasted little time stepping in. Less than 12 hours after the strike began, Hajdu ordered the flight attendants back to work, citing the risk to Canada’s economy and the disruption to tens of thousands of travelers. "Now is not the time to take risks with the economy," Hajdu said, as quoted by NPR. She referred the dispute to the Canada Industrial Relations Board, which extended the existing collective agreement until an arbitrator decides on a new contract.

"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," Hajdu explained. She also noted that the full resumption of Air Canada’s services could take several days, as the airline works to stabilize its schedule. Air Canada itself warned that some flights would continue to be canceled over the next seven to ten days until normal operations are restored.

The government’s intervention drew mixed reactions. The Business Council of Canada and the Canadian Chamber of Commerce both welcomed the move, emphasizing the importance of keeping the country’s transportation network running smoothly. Ian Lee, an associate professor at Carleton University’s Sprott School of Business, told NPR that government intervention in transportation strikes is nothing new. "They will intervene to bring the strike to an end. Why? Because it has happened 45 times from 1950 until now," Lee noted, highlighting Canadians’ heavy reliance on air travel given the country’s vast geography.

Yet, not everyone was pleased. The union representing the flight attendants expressed frustration, arguing that government intervention undermines workers’ leverage at the bargaining table. The union for Canada’s major railroads, forced into arbitration during a work stoppage last year, is currently suing the government on similar grounds. As NPR reported, the flight attendants’ union is considering its own legal challenge.

For travelers, the ordeal was nothing short of chaotic. Passengers were left scrambling for alternatives, with some facing the prospect of being stranded in foreign countries. Keelin Pringnitz, returning with her family from a European vacation, described the confusion at London’s Heathrow Airport: "It didn’t go over well with the line. Nobody really seemed interested, everybody seemed a little bit amused almost at the suggestion, or exasperated, because it is a bit ridiculous to offer to take stranded passengers to a different country to strand them there," she told NPR. Montreal resident Alex Laroche and his girlfriend, who had saved for months for a European trip, now saw their $8,000 vacation—and nonrefundable lodging—hanging in the balance.

Air Canada tried to offer some solace, announcing that passengers affected by cancellations would be eligible for full refunds or alternative travel options through other Canadian and foreign airlines. However, the airline warned that rebooking could not be guaranteed due to the summer travel peak, as flights on other carriers were already nearly full. Laroche considered booking with a different airline, but found that most flights were either full or more than double the cost of his original $3,000 ticket.

The roots of the dispute run deep. Air Canada and CUPE have been locked in contract talks for about eight months, with both sides admitting they remain far apart on key issues—most notably, pay and compensation for unpaid work when planes aren’t in the air. The airline’s latest offer included a 38% increase in total compensation over four years, including benefits and pensions, with an 8% raise in the first year. Air Canada argued that this would have made its flight attendants the best compensated in Canada.

The union, however, rejected the offer, citing inflation and fairness concerns. "Their wage is barely livable," Laroche said after learning more about the dispute. Natasha Stea, a flight attendant and local union president, told NPR, "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 pointed out that about 70% of Air Canada’s flight attendants are women, and contrasted their pay with that of the airline’s pilots—who, according to Stea, received significant raises last year. Wesley Lesosky, President of the Air Canada Component of CUPE, was even more blunt: "We’re the national carrier and we have people operating in poverty. Like that’s disgusting, that’s very problematic," he said at a news conference.

The bitter contract fight also raised broader questions about labor relations in Canada’s vital transportation sector. As Lee observed, "We’re so huge a country and it’s so disruptive when there is a strike of any kind in transportation." The repeated pattern of government intervention—seen not only with Air Canada but also with the country’s major railroads—has sparked debate about the balance of power between unions and employers, and the rights of workers to strike in essential industries.

As Air Canada’s planes begin to take off again, the airline faces the daunting task of restoring its schedule and regaining the trust of frustrated customers. For many travelers, the experience has been a harsh reminder of how quickly a labor dispute can upend even the best-laid plans. For flight attendants, the fight for better pay and working conditions continues—now in the hands of an arbitrator, and with the eyes of the nation watching closely.

While the immediate crisis may be passing, the underlying tensions remain unresolved, and both the airline and its employees are left to navigate the turbulent skies of labor relations in a country where, it seems, the next transportation dispute is never too far away.