Air Canada has postponed its planned resumption of flight operations after the Canadian Union of Public Employees (CUPE) instructed flight attendants to defy a Canadian Industrial Relations Board (CIRB) order to return to work.
The airline, which halted all operations on August 16, due to a strike by CUPE, had intended to restart some Air Canada and Air Canada Rouge flights on August 17. However, in a statement, the carrier said those plans were cancelled after CUPE “illegally directed” its members to ignore the CIRB’s return-to-work directive. Flights are now expected to resume on August 18.
As a result of the disruption, the airline has pulled its third quarter and full year 2025 guidance.
Approximately 240 flights scheduled for August 17, were cancelled, with the airline typically operating around 700 flights daily. Air Canada Express services, operated by Jazz and PAL, remain unaffected and continue normal operations.
CUPE’s walkout came amid a dispute over wages and working conditions, with the union demanding an end to unpaid work hours and what it describes as "poverty wages" for flight attendants.
Newly elected Prime Minister Mark Carney invoked Section 107 of the Canada Labour Code, referring the matter to the CIRB for forced arbitration. The CIRB then ordered both CUPE and Air Canada to resume normal operations, effectively ending both the strike and the airline’s lockout of workers.
The airline is urging customers not to go to the airport unless they have confirmed alternate bookings.
CUPE, which represents nearly 10,000 flight attendants at Air Canada and Air Canada Rouge, criticised the government’s intervention as a betrayal of workers’ rights. In a statement, CUPE national president Mark Hancock accused the government of siding with corporate interests.
“We will continue to fight on the picket lines, on the streets, at the bargaining table, in the courts, and in Parliament until the injustice of unpaid work is done for good,” said Hancock.
The union warned that the government’s move could have wider implications across the aviation sector, particularly in ongoing and future labour negotiations with carriers like WestJet and Porter.
Air Canada said it will monitor the situation and provide updates as the operational restart approaches.