Following several disrupted air travels, Air Canada strike comes to a tentative halt after negotiations yield a potential agreement: Recapping the recent events

The long-running Air Canada flight attendants' strike, which involved over 10,000 workers and disrupted travel for hundreds of thousands of passengers, has come to an end. The tentative agreement was reached on August 19, 2025, marking the end of a 40-year-old standoff.

The strike, represented by the Canadian Union of Public Employees (CUPE), was declared unlawful by the Canada Industrial Relations Board (CIRB) following CUPE's refusal to comply with the back-to-work order. Canadian Prime Minister Mark Carney expressed disappointment over the failure to reach an agreement after eight months of negotiations.

The dispute centered on demands for higher wages and compensation for unpaid ground duties. According to CUPE, the unpaid work amounted to 35 hours of unpaid work per month per attendant.

The agreement, mediated by William Kaplan, aligns with industry trends seen at US carriers like Delta and American Airlines in terms of addressing ground pay demands. It includes pay increases and at least 60 minutes of ground pay per flight. Air Canada's CEO, Michael Rousseau, described the airline's offer as a 38% total compensation increase over four years.

The resolution averted further economic damage, though passenger frustration lingered due to cancellations and rebooking challenges. The strike disrupted travel for approximately 500,000 passengers, grounding approximately 700 daily flights operated by Air Canada and Air Canada Rouge.

The strike's broader economic impact prompted Jobs Minister Patty Hajdu to invoke Section 107 of the Canada Labour Code. Hajdu also announced a probe into unpaid work allegations in the airline sector, expected to conclude in six to eight weeks.

The agreement awaits ratification by CUPE members. The negotiation process was initially mediated by Volker K. Thomalla. CUPE's persistence led to renewed negotiations on August 19, which ultimately resulted in the tentative agreement.

The end of the strike marks a significant milestone for Air Canada and its passengers. The airline suspended its third-quarter and full-year 2025 profit forecasts due to the strike's impact, with shares dropping nearly 3%. Estimated daily financial losses due to the strike amounted to $60 million.

Despite the challenges faced during the strike, both parties can now focus on moving forward and ensuring a smooth operation for Air Canada's passengers.

Following several disrupted air travels, Air Canada strike comes to a tentative halt after negotiations yield a potential agreement: Recapping the recent events