Air Canada's operations remained crippled Monday as more than 10,000 flight attendants defied a federal order to return to work, forcing the airline to suspend third-quarter and full-year 2025 guidance and stranding hundreds of thousands of travelers at the height of the tourism season.
The Canadian Union of Public Employees (CUPE), representing the striking crews, rejected a ruling by the Canada Industrial Relations Board (CIRB) that declared the strike unlawful and ordered binding arbitration. "If it means folks like me going to jail, then so be it. If it means our union being fined, then so be it. We're looking for a solution here," Mark Hancock, CUPE's national president, said at a press conference Monday.
Air Canada said in a press release it "deeply regrets the impact the labour disruption has had on its customers, its stakeholders and the communities it serves." The airline estimated that roughly 500,000 customers' flights have been cancelled since Saturday, when attendants first walked off the job. The carrier confirmed Sunday it cancelled about 240 flights and said all mainline and Rouge flights remain grounded until further notice, though regional affiliates Jazz and PAL continue to operate.
The standoff has rattled investors, with Air Canada shares falling nearly 3% after the company withdrew earnings guidance. The airline normally carries about 130,000 passengers per day as part of the global Star Alliance, but mounting cancellations have forced a broad operational freeze.
Prime Minister Mark Carney urged a quick settlement, warning of wider economic fallout. "We are in a situation where literally hundreds of thousands of Canadians and visitors to our country are being disrupted by this action," Carney told reporters in Ottawa. "I urge both parties to resolve this as quickly as possible."
Union officials insist the strike will continue until Air Canada addresses wage gaps and unpaid work. Flight attendants are demanding pay parity with crews at rival Air Transat and full compensation for ground duties such as boarding. In a message to staff seen by Reuters, Air Canada executive Andrew Yiu told workers they "would be accountable for defying the board's order and not returning to work," adding, "To be clear, there is no lockout in place, and the continued strike is illegal."
Some travelers voiced sympathy but also frustration. "It's not responsible to strike and leave thousands of passengers in such chaos," said Danna Wu, a 35-year-old student in Winnipeg who may drive to Vancouver for a visa appointment if flights remain grounded.
Labor experts noted the rarity of a union openly defying CIRB directives. Michael Lynk, professor emeritus of law at Western University, said the Canada Labour Code allows fines and sanctions against both the union and individual workers. Cornell University professor Dionne Pohler added that "the government will be very reticent to be too heavy-handed because in Canada, the Supreme Court has ruled that governments have to be very careful when they take away the right to strike, even for public sector workers that may be deemed essential."
Candace Rennick, CUPE secretary and treasurer, called the government's order "a disgraceful misuse of power that reeks of systemic bias and corporate favoritism." Hancock reinforced the union's resolve, stating: "If you're going to fine us or you're going to try and take us on financially, then you can take us to court, and we can see where that plays out."
