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Air Canada Flight Attendants' Strike Costs Airline Millions, Disrupts Travelers
18 Aug
Summary
- Air Canada flight attendants' strike enters third day, costing airline $60 million in daily revenue
- Federal government intervenes, orders binding arbitration and return-to-work, but union refuses to comply
- Strike disrupts travel, but lower fuel prices may partially offset labor costs for Air Canada
As of August 18, 2025, Air Canada's flight attendants' strike has entered its third day, costing the airline an estimated $60 million in daily revenue. The federal government has intervened, directing the Canadian Industrial Relations Board (CIRB) to impose a process of binding arbitration, which the CIRB did on the previous Sunday. Subsequently, the CIRB issued a return-to-work order, directing both Air Canada and its flight attendants to resume operations.
However, the Canadian Union of Public Employees, which represents the flight attendants, has not complied with the order. In response, the CIRB has declared the walkout illegal and ordered the union to provide written confirmation by noon on the previous Monday that it has revoked the strike authorization. The union has refused to do so, stating that it will continue fighting for its flight attendants and the right to collective bargaining.
Although the airline is not paying to operate flights during the strike, it continues to face significant fixed costs. Doerksen, an analyst at National Bank, estimates that the airline's daily losses could reach $25 million per day since operations are structured for a quick restart. However, lower-than-projected jet fuel prices might partially offset the labor disruption costs, providing a $185 million boost to National Bank's 2025 EBITDA estimate.
