Air Canada Provides Update on Labour Dispute with CUPE and Announces Phased Wind

Air Canada Issues Lockout Notice in Response to CUPE's 72-Hour Strike Notice

Air Canada has issued a 72-hour lockout notice to the Canadian Union of Public Employees (CUPE) representing 10,000 flight attendants, effective immediately. This decision comes after CUPE provided notice of its intention to begin a strike on August 16, 2025. To mitigate the impact of the potential disruption on customers, Air Canada will initiate a phased shutdown of its operations over the next three days.

Despite eight months of good-faith negotiations, including the assistance of federal conciliators, Air Canada has been unable to reach a tentative agreement with CUPE. The airline tabled a revised comprehensive proposal on August 11, which included a 38% total compensation increase over four years, addressed ground pay, improved pensions and benefits, and contained other improvements. Unfortunately, CUPE rejected this offer and instead chose to issue a strike notice.

"We regret the impact a disruption will have on our customers, our stakeholders, and the communities we serve," said Michael Rousseau, President and Chief Executive of Air Canada. "However, the disappointing conduct of CUPE's negotiators and the union's stated intention to launch a strike puts us in a position where our only responsible course of action is to provide certainty by implementing an orderly suspension of Air Canada's and Air Canada Rouge's operations through a lockout."

Air Canada has requested government-directed arbitration to resolve the situation, citing recent government interventions in rail, port, and airline labour disruptions in Canada as precedent. The airline believes that a third-party, independent arbitrator can assist in addressing outstanding issues and develop a new tentative agreement through binding arbitration.

In the meantime, Air Canada Express flights operated by Jazz and PAL Airlines will continue to operate as normal. However, customers whose flights are cancelled will be notified and can obtain a full refund. The company has made arrangements with other Canadian and foreign carriers to provide customers alternative travel options to the extent possible.

Air Canada strongly recommends against customers going to the airport unless they have a confirmed booking and their flights are showing as operating. The airline has implemented a flexible rebooking policy for all customers, allowing them to change or defer travel at no additional cost.

For more information, customers can visit www.aircanada.com/action, where they will find an FAQ and additional resources to help navigate the situation.

Air Canada is committed to providing its customers with the highest level of service and apologizes for any inconvenience this situation may cause. The airline remains available for further negotiations or to explore options to finalize a new collective agreement.