Air Canada has suspended its third-quarter and full-year profit forecasts as a strike by its flight attendants, initiated over wage and scheduling disputes, continues to disrupt operations.
The airline, which serves approximately 130,000 passengers daily, has grounded all Air Canada and Air Canada Rouge flights, with an estimated 500,000 customers affected by cancellations.
The Canadian Union of Public Employees (CUPE), representing 10,000 cabin crew members, rejected a government order to return to work, escalating tensions with both the airline and federal authorities.
The Canada Industrial Relations Board (CIRB) declared the strike unlawful on Monday after CUPE refused to comply with a back-to-work order issued on Sunday, which also mandated binding arbitration.
The union has called for renewed negotiations, arguing that arbitration reduces pressure on Air Canada to reach a fair agreement.
The government, led by Prime Minister Mark Carney, faces limited options, including potential court enforcement or legislation, though parliamentary approval would be delayed until mid-September.
The strike, which began early Saturday, marks a rare defiance of a CIRB order under Section 107 regulations.
The ongoing strike has caused significant disruptions, with Air Canada canceling approximately 240 flights on Sunday alone.
Travelers at Toronto Pearson International Airport expressed frustration and confusion over uncertain flight schedules.
While Air Canada Express flights operated by Jazz or PAL continue unaffected, the airline has delayed plans to resume operations until Monday evening.
The standoff has drawn attention to labor rights debates, with some Canadians voicing support for the attendants’ demands for better wages and compensation for ground duties, such as passenger boarding.