Air Canada
Air Canada / Official Website

It was a travel weekend no passenger wanted.

In the early hours of Saturday morning, Air Canada cabin crew walked off the job, grounding hundreds of flights, stranding thousands of passengers and plunging holiday plans into chaos.

By midday, terminals in Toronto, Vancouver and Montreal were packed with frustrated travellers clutching luggage and searching for answers.

Why Did Air Canada Ground Its Flights?

The strike began shortly after 1 a.m. EDT, following a 72-hour strike notice from the Canadian Union of Public Employees (CUPE), which represents more than 10,000 Air Canada flight attendants.

Union leaders said the walkout was fuelled by disputes over wages and unpaid work. Within hours, the airline cancelled the majority of its 700 daily flights, leaving an estimated 130,000 passengers affected.

Air Canada warned earlier that a 'complete cessation of flying' was inevitable if no settlement was reached. The carrier operates in 64 countries with a fleet of 259 aircraft. Air Canada Express services, which carry about 20 per cent of daily customers, remain unaffected.

Government Steps In With Arbitration

As cancellations mounted, the federal government intervened. Jobs Minister Patty Hajdu invoked Section 107 of the Canada Labour Code, ordering both sides into binding arbitration.

'Despite significant supports from the government, these parties have been unable to resolve their differences in a timely manner,' Hajdu said, adding that action was needed to protect Canadians and minimise disruption.

CUPE quickly denounced the decision, accusing Ottawa of 'violating our charter rights' and warning that unresolved disputes could simply be delayed. The union had earlier rejected proposals for third-party arbitration, suggesting tensions could persist even if flights resume.

When Will Flights Resume?

Despite government action, Air Canada aircraft remained grounded late Saturday. The airline announced flights would stay suspended until at least Sunday afternoon, pending a ruling from the Industrial Relations Board.

That left thousands of travellers in limbo, including more than 25,000 Canadians and many U.S. visitors.

According to CBC News, Air Canada has been coordinating with foreign carriers to offer limited alternatives. However, officials warned that the peak summer season means seats remain scarce. The airline urged passengers not to go to airports unless they had confirmed bookings with Air Canada or another airline.

UPDATE – 17 AUGUST 2025: Air Canada confirmed that flights will begin resuming on Sunday evening after the Canada Industrial Relations Board directed operations to restart. More than 10,000 flight attendants from both Air Canada and Air Canada Rouge have been ordered back to work by 2 p.m. in Montreal. In a statement, the airline said services will gradually ramp up in the coming days, but it may take several days before operations return fully to normal.

What Passengers Need to Know

Air Canada said affected travellers will be offered full refunds, travel credits or the option to rebook at no extra cost.

Passengers holding tickets between 15–19 August can rebook for any date up to 12 September 2025. Non-refundable fares may also be converted into Air Canada Wallet credits.

The airline stressed that return flights on round-trip bookings will not be cancelled automatically, giving flexibility to those already at their destinations.

What Passengers Can Do Now

  • Check email and texts: Air Canada will notify you of cancellations or rebookings.
  • Visit the website and socials: Updates are being posted hourly.
  • Free changes: Customers booked between 15–19 August can rebook at no cost for travel between 21 August–12 September.
  • Refunds and credits: Non-refundable tickets may be converted to credits or refunded in full.
  • Stay put unless confirmed: Do not go to the airport unless you have a confirmed booking.
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