Air Canada abruptly ended its press conference Thursday(August 14) after members of Canadian Union of Public Employees (CUPE) entered the room holding signs reading “unpaid work won’t fly” and “UnfAir Canada.” They are now bracing for a significant operational shutdown as its flight attendants, represented by the Canadian Union of Public Employees (CUPE), prepare to strike on Saturday, August 16, 2025.

The airline has initiated the cancellation of approximately 500 flights by the end of Friday, August 15, affecting an estimated 130,000 passengers daily. This disruption coincides with the peak summer travel season, amplifying concerns among travelers and the tourism industry.

Impact on Travelers

Passengers scheduled to fly between August 15 and 18 are advised to check their flight status and avoid going to the airport unless they have a confirmed flight. Air Canada is offering full refunds or rebooking options at no additional cost for affected customers. However, due to high demand during the summer season, immediate rebooking may not be available, and travelers won't be compensated for expenses like food or lodging since the disruption is classified as beyond the airline’s control

Air Canada says its latest contract proposal would make its flight attendants the highest paid in the country, with compensation packages including base salary, incentive pay, pension plans, health coverage, sick leave, paid vacation, and discounted travel. According to the airline, half of its mainline attendants earned over $54,000 last year, excluding incentives, pensions, and health benefits, with pay climbing to around $70,000 after a decade of service.

Service directors, the company notes, make even more. The 38 percent figure touted by executives, they say, would be added on top of those amounts.

CUPE representative Natasha Stea says the concrete offer they’ve received is an 8 percent raise in the first year, less than last year’s inflation rate. While the Bank of Canada’s official June inflation figure was 1.9 percent, the union argues that cumulative inflation since 2015 has outpaced wage growth under their previous contract.

The union also claims Air Canada inflates its compensation numbers by assigning dollar values to pensions, benefits, and mandated rest periods, items they say should not be counted as income. “If we go down to the basics of this, the money coming into our pockets to pay for rent, transport, and food is only the wage part,” Stea told CTVNews.

CUPE’s airline division president, Wesley Lesosky, says low pay is forcing some attendants to live in their cars. A junior full-time attendant, he notes, takes home about $1,952 a month before taxes. Another major sticking point is the issue of unpaid work, tasks such as boarding, deplaning, and preflight safety checks, which are currently not compensated.

How it all started

The labor dispute centers on compensation and working conditions. CUPE has rejected Air Canada's latest offer, which includes a 38 percent wage increase over four years, citing that it falls below inflation rates and does not adequately address unpaid ground duties such as boarding and safety checks. In response, the airline issued a lockout notice, leading to the current flight cancellations

Government Response

Federal Minister of Jobs and Families, Patty Hajdu, has urged both parties to resume negotiations and has made federal mediators available to assist in resolving the dispute. However, CUPE has rejected binding arbitration, and as of now, the strike is set to proceed unless a last-minute agreement is reached.

With the strike set to begin on Saturday, travelers are urged to stay informed and consider alternative travel arrangements. The situation remains fluid, and both Air Canada and CUPE have indicated a willingness to continue negotiations in the hopes of resolving before the strike commences.

For the latest updates, passengers should monitor official Air Canada channels and CUPE communications.