Air Canada Says Flight Attendant Strike Cost Airline $270 Million

Air Canada this week estimated the financial impact of the August flight attendants’ strike at approximately $270 million USD (around CA $375 million).

The airline has released estimated results for the third quarter of 2025 and updated its full-year 2025 financial guidance, which was suspended in August.

For the quarter ending September 30, 2025, Air Canada anticipates:

• Operated capacity to decline by about 2% compared to the same period in 2024, resulting from the cancellation of more than 3,200 flights.
• Operating income between $250 million and $300 million USD, and adjusted EBITDA between $950 million and $1 billion USD. This is a significant drop from the third quarter of 2024, which recorded an operating income of $1.040 billion and an adjusted EBITDA of $1.523 billion.

Strike Financial Breakdown

When the Canadian Union of Public Employees (CUPE) issued its strike notice, Air Canada enacted contingency plans, ultimately canceling over 3,200 flights in August. The total financial impact of the disruption—which the airline refers to as “an unlawful strike”—is estimated to be $270 million USD in operating income and adjusted EBITDA.

This $270 million figure is derived from three main components:

• Revenue Loss: An estimated $310 million (CA $430 million) in revenue was lost, primarily due to customer refunds, compensation payments, and lower than expected travel bookings in August and early September.
• Cost Avoidance: The reduced flying activity resulted in an estimated $105 million (CA $145 million) in avoided costs, mostly due to lower fuel expenses.
• Incremental Costs: The cost savings were partially offset by an estimated $65 million (CA $90 million) in additional costs, associated with reimbursements to customers for out-of-pocket expenses and unforeseen labor-related operating costs.

Customer Impact and Arbitration

Air Canada says it remains committed to resolving every claim submitted by affected customers quickly and accurately, having processed more than 60,000 claims to date. Air Canada provides updates on its progress here.

Air Canada and CUPE are currently proceeding to arbitration to finalize the wage portion of the four-year tentative agreement. Neither party can initiate a labor disruption during the arbitration process or the term of the new agreement.