Air Canada has reached a tentative agreement with its unionized flight attendants, concluding a four-day strike that disrupted operations and affected hundreds of thousands of travelers. This marked the first strike by Air Canada cabin crew in 40 years.

The strike began at 12:58 am EDT on August 16, 2025, following a 72-hour notice issued by the Canadian Union of Public Employees (CUPE). Despite a ruling from the Canada Industrial Relations Board (CIRB) deeming the strike illegal, CUPE continued the job action, demanding fair compensation for work performed while aircraft are on the ground.

At the heart of the dispute was the issue of "ground pay," compensation for tasks such as boarding passengers, conducting safety briefings, and preparing the cabin, duties for which attendants were previously unpaid. CUPE estimated that flight attendants were performing up to 35 hours of unpaid labor each month.

Wesley Lesosky, president of CUPE's Air Canada division, emphasized the need for compensation: "Since you require us to arrive an hour early and start safety briefings and checks, and assist on the ground, we expect to be compensated for that time."

Government intervention

The strike prompted swift federal government involvement. Jobs Minister Patty Hajdu invoked Section 107 of the Canada Labour Code, calling for binding arbitration due to the potential economic fallout. Air Canada carries approximately 130,000 passengers daily, underscoring the broader impact.

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Despite government orders to return to work, CUPE leaders refused to stand down, leading to a standoff between the union, the airline, and federal authorities. National CUPE president Mark Hancock even stated he was prepared to face jail time rather than comply.

Financial impact on Air Canada

The strike dealt a significant financial blow to the airline. Analysts estimated daily revenue losses of $60 million and daily EBITDA losses of around $25 million. Air Canada canceled more than 2,300 flights and suspended its financial guidance for both the third quarter and the full year. The airline’s stock dropped by over 1.5% during the period.

Affected passengers were offered full refunds, travel credits, or rebookings. However, customer frustration mounted as delays extended into the following week, with full service restoration expected to take up to ten days.

Tentative agreement and industry implications

After nine hours of mediation, CUPE announced that a tentative agreement had been reached. The union declared, “The strike has ended. We have a tentative agreement we will bring forward to you,” and confirmed that “unpaid work is over.”

Although specific details of the settlement have not been released, earlier offers from Air Canada included a 38% total compensation increase over four years, with a 25% increase in the first year. Hourly rates were set to reach $94, and senior flight attendants could earn up to $87,000 annually by 2027.

This outcome signals a shift in the aviation industry, echoing similar demands made by flight crews at Delta, American Airlines, and United Airlines, all pushing for compensation beyond traditional flight time.

Passenger experiences during the strike

The disruption left many travelers stranded and frustrated. Klaus Hickman, a retiree, missed a flight to Toronto and had to rebook with another airline. “They want to get more money to survive. And so it is with everybody else,” he told Reuters.

Another passenger, James Numfor from Regina, told Reuters that he spent two nights in Toronto airport with his family after returning from a funeral in Cameroon. He said Air Canada provided hotel accommodation for one night only and left them without additional support.