Published on
August 17, 2025
Air Canada has frozen all travel services in response to a strike by over 10,000 flight attendants, which has led to widespread flight cancellations, affecting 130,000 passengers daily. The Canadian government stepped in after months of talks with the Canadian Union of Public Employees (CUPE) didn’t produce a deal. Because of that, 95% of all planned flights were canceled on August 16, 2025. This intensified travel chaos not only within Canada but worldwide. To fix the situation and get travel back on track, officials ordered the workers and management to settle the matter through binding arbitration. Even with that action, many travelers are still facing long delays.
On August 16, 2025, Air Canada was forced to freeze all operations due to a strike by over 10,000 flight attendants represented by the Canadian Union of Public Employees (CUPE). The strike led to massive disruptions, with 196 flights canceled on August 15 and a staggering 597 flights (95% of its schedule) canceled on August 16, leaving 130,000 passengers stranded daily. With no resolution in sight, the airline’s operations were halted, affecting both domestic and international travel. The Canadian government intervened by invoking Section 107 of the Canada Labour Code, calling for binding arbitration to end the dispute and resume flights. This intervention aims to resolve the ongoing labor conflict while mitigating the widespread travel disruptions.
The Air Canada flight attendants’ strike, which began early on August 16, 2025, has been officially ended through government intervention. Minister Patty Hajdu invoked Section 107 of the Canada Labour Code, requesting the Canada Industrial Relations Board (CIRB) to impose binding arbitration to resolve the labor dispute. This decision marks the end of the strike, but not the end of the impact, as travelers and businesses continue to feel the effects of the disruption.
Recent Flight Cancellations and Delays:
The impact of the ongoing strike and labor dispute on Air Canada’s operations has been significant. On Friday, August 15, 2025, Air Canada canceled a total of 196 flights. The situation worsened on August 16, when nearly 95% of Air Canada’s scheduled flights were canceled, totaling 597 flights, while only 5 flights were delayed. These disruptions affected thousands of passengers, further exacerbating travel chaos across the airline’s global network.
The Strike’s Impact on Air Canada Operations and Global Travel
On August 16, 2025, Air Canada was forced to suspend all its operations, including those of its subsidiary, Air Canada Rouge, due to the strike action initiated by over 10,000 flight attendants represented by the Canadian Union of Public Employees (CUPE). The strike, which has affected approximately 130,000 passengers daily, caused major disruptions to both domestic and international travel. The ripple effect of the strike has led to cancellations and delays across global routes, stranding passengers in airports worldwide.
Air Canada’s decision to freeze its operations has severely disrupted the travel plans of thousands. Passengers have been advised not to come to the airport unless they have alternative travel arrangements with other airlines. The airline has also announced a gradual reduction of its daily flights, further compounding the problem for travelers who had their trips scheduled with the carrier.
The Labor Dispute: A Timeline of Events
The labor dispute between CUPE and Air Canada has been simmering for months, with negotiations reaching a boiling point in early August 2025. CUPE presented several proposals to Air Canada, but the airline failed to respond meaningfully, leading to growing frustration on both sides.
- August 11, 2025: CUPE submitted a revised wage proposal, which included concessions such as withdrawing the demand for a wage adjustment equal to that of pilots. However, Air Canada declined to engage with this proposal.
- August 12, 2025: CUPE further modified its wage position, but Air Canada chose not to respond. Instead, the airline declared an impasse, effectively halting negotiations.
- August 13, 2025: In response to CUPE’s 72-hour strike notice, Air Canada issued a lockout notice of its own, suspending operations and claiming the need to maintain stability.
By August 16, Air Canada’s flight attendants began striking, and with no resolution in sight, the airline halted all operations, freezing services for the affected 130,000 passengers each day.
Government Intervention and the Path to Arbitration
The federal government, particularly Minister of Jobs and Families Patty Hajdu, played a crucial role in the ongoing negotiations. Minister Hajdu initially urged both parties to continue negotiations but later exercised her authority under Section 107 of the Canada Labour Code. On August 12, 2025, she invoked this provision, requesting the Canada Industrial Relations Board (CIRB) to step in and arbitrate the dispute, imposing binding arbitration.
The government’s decision to intervene was partly due to the severe economic and social implications of a prolonged strike. With Canadian families and businesses already facing instability due to other economic challenges, the government emphasized the importance of ensuring the smooth movement of passengers and goods, including critical shipments like pharmaceuticals and organ tissue, which Air Canada is heavily involved in transporting.
Minister Hajdu’s statement highlighted the essential role that flight attendants play in ensuring the safety and comfort of travelers. She also emphasized that it was critical to reach an agreement to avoid further economic disruptions, especially as the Canadian economy was already under strain.
The Immediate Effects on Travelers
As the strike began, thousands of travelers found themselves stranded, with no clear path forward. Air Canada canceled all flights, leaving passengers in limbo. Those affected by the disruption were strongly advised by the airline to check the status of their flights and not to go to the airport unless they had a confirmed booking with other airlines.
For those whose flights were not yet canceled, Air Canada put in place several measures to assist with rebooking or refunds:
- Rebooking Options: Passengers whose flights were canceled were provided with the opportunity to rebook on alternative flights with available carriers.
- Goodwill Policy: Air Canada introduced a goodwill policy that allowed passengers to rebook flights or claim credit for future travel.
- Refunds and Travel Credits: Travelers affected by canceled flights were eligible for full refunds or credits, though availability remained limited due to the high demand.
While these measures offered some relief, the strain of dealing with widespread cancellations and delays created a sense of uncertainty among travelers.
Air Canada’s Lockout Notice and Suspension of Operations
Air Canada’s lockout notice, issued on August 13, 2025, signaled the airline’s decision to suspend all operations in response to CUPE’s strike action. This unprecedented step came just hours before CUPE members began their strike, exacerbating the chaos for passengers.
While the lockout was a clear indication that Air Canada sought to curb the ongoing disruptions, it also left the airline with a substantial financial burden as it struggled to manage the cancellation of thousands of flights. Air Canada has stated its commitment to continue negotiations with CUPE and to resume services as soon as a resolution is reached.
Government’s Statement on the Labor Dispute
“After eight months of negotiations by the parties, and after meeting with both parties last night and urging them to work hard to reach a deal, it is disappointing to have to conclude today that Air Canada and CUPE flight attendants are at an impasse and remain unable to resolve their dispute.
The government firmly believes that the best deals are reached by the parties at the bargaining table. It has now become clear that this dispute won’t be resolved at the table. Canadians are increasingly finding themselves in very difficult situations and the strike is rapidly impacting the Canadian economy.
Flight attendants play a critical role in keeping Canadian families and workers safe as they travel. It is important that they be compensated fairly at all times.
The enormous impact of a nationwide labour disruption of this scale is already being felt by Canadians and visitors to our country. This impact will grow significantly with a prolonged dispute. This nationwide labour disruption is impeding the movement of passengers and critical cargo. In a year in which Canadian families and businesses have already experienced too much disruption and uncertainty, this is not the time to add additional challenges and disruptions to their lives and our economy.
Canadians rely on air travel to connect families, workers, and communities to each other and the world. Despite significant supports from the government, these parties have been unable to resolve their differences in a timely manner. The government must act to preserve stability and supply chains in this unique and uncertain economic context.
That is why I exercised my authorities under section 107 of the Canada Labour Code to direct the Canada Industrial Relations Board to arbitrate this dispute. I am exercising this authority because it is critical to maintaining and securing industrial peace, protecting Canadians and promoting conditions to resolve the dispute. Despite the parties’ resolution of several key differences, the CIRB is best positioned to help them find a solution on the outstanding items.
Accordingly, I have asked the Board to assist the parties in reaching a settlement of the outstanding terms of their collective agreement by imposing final and binding arbitration and to extend the terms of the existing collective agreement until a new one is determined by the arbitrator.
This decision will help make sure that hundreds of thousands of Canadians and visitors to our country are not impacted because of cancelled flights. Further, the shipments of critical goods such as pharmaceuticals and organ tissue, over 40% of which are moved by Air Canada, should continue to reach their destinations.
Once again, I urge the parties to work towards a fair and timely resolution.” Said The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario
How Travelers Are Coping with the Disruptions
Travelers have faced unprecedented challenges, from being stranded at airports to having their flights canceled or rescheduled. The major travel disruptions have left many travelers scrambling to find alternative ways to complete their journeys, whether by securing rebooking with other airlines or waiting for Air Canada’s eventual return to service.
For those planning international travel, the lack of available seats on other carriers has made it even more difficult to reschedule their trips. Many passengers are now facing the possibility of delays of several days or even weeks.
In the wake of these disruptions, Air Canada has strongly advised passengers to stay informed and monitor flight statuses regularly. While the airline has implemented goodwill policies to ease the burden, the overall uncertainty surrounding flight availability continues to affect travelers.
The Path to Resolution: Binding Arbitration
As of August 17, 2025, the strike has officially been ended through the Canadian government’s imposition of binding arbitration. However, while this has brought a sense of finality to the labor dispute, Air Canada’s operations remain suspended as the arbitration process continues.
- Arbitration Process: The CIRB will now work to resolve the outstanding issues in the collective agreement between Air Canada and CUPE. Both sides will be required to accept the decision of the arbitrator, which will provide a permanent resolution to the dispute.
- Resumption of Operations: The full resumption of services is expected to take several days, with estimates ranging from five to ten days for normal operations to return.
The government’s intervention has brought an end to the immediate crisis, but travelers will continue to face the consequences of the disruption in the coming days. While it’s clear that the strike has been resolved, the question remains: how will this incident impact the long-term relationship between Air Canada and its workforce?
The events surrounding Air Canada’s labor dispute have underscored the fragility of air travel during times of labor unrest. While the government’s intervention has brought an end to the strike, the economic and social consequences of the disruption are still being felt by travelers across the globe.
Air Canada has frozen all travel services due to a strike by over 10,000 flight attendants, with 130,000 passengers impacted daily. The airline took this step after failed negotiations with the Canadian Union of Public Employees (CUPE), leading to widespread cancellations and travel disruptions.
For passengers affected by this disruption, the key takeaway is to stay informed about their flight status and be prepared for the possibility of additional delays. While Air Canada’s goodwill policies offer some relief, the broader implications of this incident will be felt by the airline, its employees, and the Canadian economy for some time to come.
