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Air Canada disruption update

Air Canada has canceled all flights as a result of the union action and is in arbitration talks. Passengers should check the airline’s site for rebooking options.

August 18, 2025 at 04:19 PM
blur Air Canada Suspends All Flights, Withdraws Financial Guidance

About ten thousand Air Canada flight attendants refused a government back-to-work order, forcing the carrier to suspend service until further notice.

Air Canada Halts Flights After Flight Attendants Defy Back-to-Work Directive

Air Canada suspended all flights after ten thousand flight attendants refused a government back-to-work order, forcing the airline to pause operations and withdraw its financial guidance. Cirium data show more than 2,300 flights canceled in the past week, affecting roughly 500,000 passengers. By Monday afternoon, the carrier had canceled all flights for the day as the government sought binding arbitration, and Air Canada’s stock traded lower as markets digested the disruption.

CUPE defied the CIRB order to return to work, saying the bargaining process yielded an unfair outcome. The union contends that boarding pay, the compensation for preflight duties, remains the central issue. Air Canada has told travelers not to visit the airport while it works through rebooking options for tickets sold through late August, with passengers offered no‑cost changes to dates later in the year.

Key Takeaways

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The core dispute centers on boarding pay and preflight duties for flight attendants
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CUPE defies a government back-to-work order, triggering automatic disruptions
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Air Canada withdraws financial guidance and cancels thousands of flights
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Around 500,000 travelers are affected so far with heavy domestic and international cancellations
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Investors react to the disruption with limited movement in a mixed market
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Arbitration could set a wider industry standard for boarding time pay
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The episode tests Canada’s handling of essential services during labor battles

"We are saying no."

Mark Hancock, CUPE national president, outside Pearson Airport

"Boarding pay should be part of the wage"

Sara Nelson, president of the Association of Flight Attendants, commenting on the dispute

"Disappointing that contract negotiations came to an impasse"

Canadian Prime Minister Mark Carney commenting on the dispute

"All Air Canada and Air Canada Rouge flights are canceled due to CUPE's actions"

Air Canada spokesperson addressing passengers

The stoppage tests Canada’s tolerance for disruptions to essential services and highlights how labor pressure can collide with public needs. It also raises questions about the effectiveness of government intervention in industrial disputes that affect millions of travelers and supply chains. The conflict revolves around boarding pay, a lingering wage practice that many unions want updated as part of a broader push for fair pay for time spent on duty before doors close.

If arbitration yields a clear standard for boarding time, it could reduce the sting of similar fights in other airlines. If not, the dispute risks becoming a protracted political quarrel that hurts travelers, weighs on airline finance, and could invite renewed scrutiny of Canada’s approach to labor disputes in critical sectors.

Highlights

  • We are saying no
  • Boarding pay must change now
  • Disrupting travel hurts families
  • A fair deal is overdue for aviation's front line

Labor dispute risks political and economic fallout

The ongoing stoppage could strain public travel, weigh on investor confidence, and invite political scrutiny of government intervention and airline labor relations.

The outcome will shape how Canada balances workers’ rights with the public’s need for reliable air travel.

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