MONTREAL — August 17, 2025 — Air Canada has suspended its planned resumption of limited operations after the Canadian Union of Public Employees (CUPE), representing the airline’s flight attendants, instructed members to ignore a binding order from the Canadian Industrial Relations Board (CIRB) to return to work.
The airline had intended to restart flights by both Air Canada and its leisure carrier, Air Canada Rouge, on Sunday afternoon. Instead, operations will remain grounded until at least tomorrow evening, affecting thousands of passengers in the middle of the peak summer travel season.
“All operations of Air Canada and Air Canada Rouge were suspended August 16, 2025, due to a strike by CUPE,” the airline said in a statement. “In accordance with the Government of Canada’s direction, the CIRB ordered a resumption of our activities and directed our flight attendants to return to work. This order ended both CUPE’s strike and the lockout Air Canada had imposed in response.”
Disruption Across the Network
The defiance by CUPE has forced the cancellation of approximately 240 scheduled flights, which were set to begin operating on Sunday afternoon. On a typical day, Air Canada and Air Canada Rouge together run roughly 700 flights.
The airline emphasized that customers whose flights have been cancelled will receive direct notification and should avoid going to the airport unless they have confirmed bookings with other carriers. To manage the fallout, Air Canada is offering passengers several options: a full refund, travel credits for future use, or rebooking on other airlines where possible.
However, with demand at its highest point of the year, the company acknowledged that seats on competing airlines remain extremely limited.
In the meantime, regional flights operated under the Air Canada Express banner by Jazz Aviation and PAL Airlines continue unaffected. These smaller carriers, which run under separate labour agreements, have not been impacted by the dispute.
Federal Intervention and Union Defiance
The federal government had intervened over the weekend in an attempt to bring an end to escalating labour tensions that had already paralyzed the country’s largest airline. The CIRB ruling was intended to restart service and compel both sides back into negotiations while maintaining passenger connectivity.
But CUPE, which represents more than 10,000 Air Canada flight attendants, pushed back against the directive, urging members to continue refusing to report for duty. The union has not publicly disclosed its strategy beyond declaring its opposition to the return-to-work order.
The move marks one of the most significant acts of open defiance against the CIRB in recent memory, raising questions about enforcement and the balance of power in high-stakes labour disputes. Analysts note that the case could test the limits of Canada’s industrial relations system.
Impact on Travellers and Industry
The grounding comes at a critical time for Canadian tourism and business travel. August is traditionally one of the busiest travel months, with airports across the country already reporting heavy congestion.
Industry observers warn that a prolonged shutdown at Air Canada, which carries the bulk of Canada’s domestic and international passengers, could ripple through the broader economy — affecting hotels, tourism operators, and cargo shippers.
Air Canada Cargo, the company’s freight division, has also been forced to adjust operations as wide-body passenger aircraft remain grounded. The unit provides connectivity to hundreds of destinations worldwide and is a crucial component of global supply chains.
About Air Canada
Air Canada is Canada’s largest airline and flag carrier, with scheduled service to more than 180 airports across six continents. It is a founding member of Star Alliance and holds a Four-Star ranking from Skytrax.
The airline’s Aeroplan program is the country’s leading travel loyalty platform, offering members the ability to earn and redeem points with 45 partner airlines and a wide network of hotels, car rental firms, and retailers. Air Canada Vacations also provides package offerings to hundreds of destinations worldwide.
Air Canada has set a long-term aspirational goal of reaching net-zero greenhouse gas emissions by 2050, reflecting its commitment to climate responsibility.