Air Canada Strike: 10,000 Flight Attendants Walk Out, Disrupting Passengers and Forcing Suspension of 2025 Guidance
Air Canada is facing a major labor crisis as more than 10,000 flight attendants have gone on strike, grounding flights and leaving thousands of passengers stranded.
The dispute centers around a disagreement between the airline’s management and its union over wages and working conditions.
Company’s Offer vs Union’s Demands
In an interview with Reuters, Air Canada CEO Michael Rousseau defended the company’s offer of a 38% total compensation increase over four years.
Rousseau emphasized that the proposal addressed “many, if not all” of the issues raised by the union. He urged striking attendants to return to work, calling the strike “illegal” and harmful to the airline’s customers and brand.
The Canadian Union of Public Employees (CUPE), however, argues that the company’s proposal translates to only a 17.2% wage increase.
According to union data, entry-level flight attendants earn just C$1,952 ($1,414) per month before taxes—about 30% lower than federal minimum wage levels. Even with the company’s proposal, their wages would remain below the minimum threshold.
Impact on Operations and Passengers
Air Canada normally carries 130,000 passengers daily and controls nearly 48% of Canada’s domestic capacity, as well as international routes to 65 countries.
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The strike has left thousands stranded, with flights canceled or delayed. Rousseau stated that even if workers return immediately, it would take up to 10 days for operations to fully recover.
The company has also promised to help flight attendants who were traveling abroad before the strike and are now struggling to return to Canada.
Financial Fallout
The strike has already impacted Air Canada’s financial outlook. On Monday, the airline suspended its third-quarter and full-year 2025 guidance, citing the labor disruption. Shares of Air Canada fell by 3% as investors reacted to the uncertainty.
Analysts at TD Cowen suggested that the airline should extend an “olive branch” to the union to end the stalemate, noting that the ongoing dispute is frustrating shareholders and damaging long-term prospects.
Rousseau Stands Firm
Despite mounting pressure, Rousseau insisted that he is the right person to lead Air Canada through the crisis. He maintained confidence in the current leadership team, saying they have the right structure to guide the company forward.
While Air Canada seeks to resolve the conflict quickly, the standoff highlights the broader struggles of workers battling rising inflation and low entry-level wages across the airline industry.
Until a deal is reached, both passengers and the company will continue to bear the brunt of the disruption.