For tens of thousands of travelers across Canada and beyond, the summer of 2025 has turned into a season of frustration and uncertainty. Air Canada, the country’s largest airline, and the union representing its 10,000 flight attendants have become locked in a high-stakes standoff, leaving hundreds of thousands stranded, flights canceled by the thousands, and a nation’s labor laws tested in real time.
Talks between Air Canada and the Canadian Union of Public Employees (CUPE) resumed late Monday, August 18, 2025, for the first time since a strike began over the weekend. According to the Associated Press, the meeting, which was facilitated by a mediator in Toronto, came after days of mounting disruption. The strike, which started early Saturday, August 16, has affected about 130,000 travelers each day, peaking during the busiest travel period of the year.
The disruption has been staggering. Air Canada operates roughly 700 flights daily, and the airline estimated 500,000 customers would be impacted by cancellations. Aviation analytics firm Cirium reported that, as of Monday afternoon, at least 1,219 domestic and 1,339 international flights had been canceled since last Thursday, August 14. The ripple effects have been felt far beyond Canadian borders. Montreal resident Robert Brzymowski, for example, found himself stranded in Prague with his family, missing work and the start of the school year as his flight home was postponed by more than a week. “I wasn’t planning on losing my job over vacation,” Brzymowski told AP. “I, for one, will never fly Air Canada again. I’ll take a boat if I have to.”
But the drama isn’t just about delayed vacations and missed paychecks—it’s also about the future of labor relations in Canada. The Canada Industrial Relations Board (CIRB) declared the strike illegal on Monday, August 18, under section 91(2) of the Canada Labor Code, ordering flight attendants back to work by noon. The union, however, refused to comply, defying not just one but two return-to-work orders. “We will not be returning to the skies,” declared Mark Hancock, CUPE’s national president. “If it means folks like me going to jail, then so be it. If it means our union being fined, then so be it. We’re looking for a solution here. Our members want a solution here, but solution has to be found at the bargaining table.”
The government, meanwhile, has been watching anxiously. Patty Hajdu, Minister of Jobs and Families, directed both parties to remain in operation while participating in a final binding interest arbitration led by the federal labor board. Prime Minister Mark Carney weighed in, urging both sides to resolve the dispute swiftly. “We are in a situation where literally hundreds of thousands of Canadians and visitors to our country are being disrupted by this action,” Carney said, while also emphasizing the importance of fair compensation for flight attendants.
The union has pushed back against government intervention, arguing that such moves disincentivize Air Canada from bargaining in good faith and violate their constitutional right to strike. Citing the Canadian Charter of Rights and Freedoms and a 2015 Supreme Court ruling, the union contends that the right to strike is fundamental when negotiations break down. They also point to international labor standards: the International Labour Organization’s Committee on Freedom of Association has stated that compulsory arbitration should not replace the right to strike except in cases of essential services or national crisis.
At the heart of the dispute lies pay and working conditions. Air Canada’s latest offer includes a 38% increase in total compensation over four years, with additional benefits and pension plans. CEO Mike Rousseau has defended the proposal, telling Reuters, “That’s a good offer from our perspective. And it addresses many of the issues that we talk about, if not all the issues.” He urged striking flight attendants to return to work, warning that the strike is “illegal” and harming the airline’s customers and reputation. “We’re still amazed by the fact that CUPE is openly not following the law,” Rousseau said. “And that is very disappointing from our perspective.”
But the union disputes the numbers, claiming the offer represents only a 17.2% wage increase over four years. They argue that entry-level flight attendants currently earn C$1,952 per month before taxes—about 30% less than a worker earning the federal minimum wage. Even with Air Canada’s proposal, the union says, these workers would remain below minimum wage. Over the last 25 years, the union claims, wage increases for entry-level flight attendants have lagged far behind inflation and the average wage growth in Canada. They also allege a gender pay gap: while entry-level pilots (a male-dominated field) received a 26% wage increase, entry-level flight attendants—70% of whom are women—received only an 8% bump.
For Air Canada, the labor dispute has had immediate financial consequences. The airline suspended its third-quarter and full-year 2025 financial guidance, citing the uncertainty caused by the strike. Shares dropped 3% on August 18, reflecting investor anxiety. Analysts at TD Cowen have urged the company to “extend an olive branch” to the union, noting that the ongoing standoff is frustrating shareholders and damaging the brand.
Restoring normal operations won’t be a simple flick of a switch. Rousseau told Reuters that even if flight attendants return to work immediately, it could take up to 10 days to fully restore Air Canada’s schedule. The airline has also promised to repatriate flight attendants who were abroad when the strike began and now face difficulties returning home.
Meanwhile, passengers whose flights have been canceled are eligible for full refunds via Air Canada’s website or mobile app. But for many, the financial and personal costs have already been steep—missed work, lost contracts, and school days gone by the wayside.
As the two sides return to the negotiating table, the outcome remains uncertain. The union is adamant that meaningful change can only come through direct bargaining, not government-imposed arbitration. Air Canada, for its part, insists its offer is more than fair and is waiting for the union to accept the terms.
The strike has become a flashpoint for broader debates over labor rights, government intervention, and the realities of working in Canada’s airline industry. With both parties dug in, and the travel plans of so many hanging in the balance, all eyes are on Toronto, where the next chapter of this dispute will unfold. Whether the solution comes through compromise, continued confrontation, or further government action, one thing is certain: the summer of 2025 will be remembered as a turbulent season for Canadian aviation.
