Air Canada Grounded Amidst Flight Attendant Strike

As of Monday, August 18, 2025, Air Canada operations are severely disrupted due to an ongoing strike by approximately 10,000 flight attendants, members of the Air Canada Component of the Canadian Union of Public Employees (CUPE). This work stoppage, which began Saturday at 12:58 a.m. ET, has led to the cancellation of hundreds of flights and significantly impacted travel across Canada during the peak summer season 1 2.

Genesis of the Dispute

The core of the dispute revolves around stalled salary negotiations and concerns over unpaid groundwork. The union argues that Air Canada's wage offers, including a proposed 17.2% increase over four years, fall below inflation, market value, and the federal minimum wage when compared to competitors in Canada 1 2. A key demand from the flight attendants is compensation for duties performed on the ground before takeoff and after landing, such as boarding and deplaning, which are currently unpaid 1 3.

Escalating Tensions and Legal Orders

The strike was swiftly declared "unlawful" by the Canadian Industrial Relations Board (CIRB) on Monday morning, marking the second time the union has defied a return-to-work order 1 2. The CIRB initially ordered flight attendants back to work by Sunday at 2 p.m. ET, a directive the union pushed back against 1. Following this defiance, the CIRB issued a new order for CUPE to provide written public notice to its members to resume work by 12 p.m. ET on Monday 1. Despite these orders, CUPE National President Mark Hancock publicly stated on Monday that the union would remain on strike, expressing a willingness to face repercussions, including potential fines or jail time for union leaders 2 3.

Impact on Travel and Airline Operations

The strike has forced Air Canada to cancel 738 flights on Sunday and nearly 400 more flights on Monday, impacting an estimated 130,000 travelers per day 1. Passengers have reported being stranded or forced to rebook flights with other carriers 1. In response to the labor disruptions and grounded fleet, Air Canada announced on Monday that it would suspend its third-quarter and full-year 2025 operating and financial forecasts, signaling a significant financial hit 1 3. Industry analysts estimate the strike is costing the airline approximately $61 million per day in lost revenue 3.

Broader Implications and Reactions

Canadian officials, including Minister of Jobs and Families Patty Hajdu and Prime Minister Mark Carney, have urged both parties to resolve the dispute swiftly, emphasizing the economic disruption to Canadian businesses and families 1 3. Minister Hajdu has also initiated a federal probe into allegations of unpaid work across the airline sector 3. The flight attendants maintain they prefer to be working and are fighting for fair compensation, asserting that the airline has been "acting in poor faith since the beginning" of negotiations 1. Other labor groups, including the Air Line Pilots Association (ALPA), have voiced solidarity with CUPE, with some leaders indicating readiness for a "fight back campaign" if the government's intervention is seen as unconstitutional 3.