Air Canada faces an unprecedented operational shutdown as 10,000 flight attendants, represented by the CUPE union, prepare to strike after rejecting a proposed 38% wage increase over four years. The union, which voted 99.7% in favor of the walkout, demands better pay for ground duties like boarding and unpaid wait times between flights. With the strike set to begin on August 16, 2025, the airline could cancel 430 daily flights, disrupting 130,000 passengers—primarily on routes between Canada and the U.S. Air Canada’s stock has already dipped 1% amid the uncertainty.
Government Intervention Sought
The airline has urged the federal government to enforce binding arbitration under Canada’s labor laws, citing precedents in rail and port disputes. Analysts predict intervention is likely, given the peak summer travel season. While Air Canada Express remains unaffected, it handles only 20% of daily traffic. The company has secured alternate travel arrangements with partner airlines, but investor confidence hinges on swift resolution.
