An Air Canada Strike is Looming: What Travellers Need to Know

With a potential strike by Air Canada Flight Attendants looming Saturday, August 16, many travellers are left wondering, “now what?”

With so much uncertainty, it can be confusing and worrisome for travellers to know how to proceed with their plans.

It’s important to note that at the time of publication, Air Canada flights have not been cancelled or impacted. Air Canada Vacations and Air Canada are, however, offering a goodwill policy which allows consumers with imminent travel to change their plans or receive a future travel voucher.

As such, customers who have purchased a travel package that includes an Air Canada flight prior to August 13, 2025, for travel dates between August 15 and August 18, 2025, can modify their booking without incurring change fees and rebook for an alternate travel date from August 21, 2025, onwards.

If a flight is cancelled, Air Canada will try to rebook on the first available flight on another carrier, however that might prove difficult during peak summer season. Travellers are encouraged to make sure their contact info (email, text) is up to date. More information for Air Canada Vacations can be found at this link and for Air Canada flights only at this link.

Meanwhile as travel advisors begin a scramble to deal with the uncertainty of future bookings and with more immediate travel plan disruptions, the Travel Industry Council of Ontario (TICO) has issued a series of guidelines to help consumers navigate these potentially muddy waters.

“Travel disruptions can create uncertainty and stress for travellers and for the travel advisors supporting them,” said TICO CEO Richard Smart. “If any part of a travel package cannot be delivered, consumers are protected under Ontario law, providing flexibility and peace of mind during uncertain times.”

Under TICO regulations, if Air Canada Vacations is unable to provide the travel services paid for, then the consumer must be offered their choice of:

• A refund;
• Comparable alternate travel services acceptable to the customer; or
• A voucher or similar document that is acceptable to the customer for future redemption towards travel services.

Travel Market Report Canada also reached out to Air Passenger Protection Advocate Gabor Lukacs, who reminded travellers they are not legally obligated to accept a refund if that’s not what they want.

“Air Canada has been attempting to mislead passengers to believe that they have to accept a refund or that Air Canada can force a refund on them,” Lukacs said. “This is not the case. The most important right for passengers to remember is that Air Canada owes them alternate transportation.”

Lukacs also reminds travellers there are three government passenger protection regulations; the Air Passenger Protection Regulation (APPR), the Montreal Convention and the European Law EU261 (EU261 applies only to AC flights departing from the EU).

Whether a package or air-only was booked doesn’t matter, Lukacs said. “The airline still owes the same obligations under the APPR, EU261, and the Montreal Convention, regardless of how to the ticket was booked.”

Under the APPR, which Lukacs calls “inferior regulations,” pre-emptive cancellation (meaning before August 16) involves two options: “Continuing to Travel, Plus Assistance and Compensation for Inconvenience; or Refund and Return to Point of Origin, Plus Compensation for Inconvenience.” These rules don’t apply to reactive cancellation – after the strike begins.

Under those regulations, the airline must either book travellers free of charge within 9 hours on a partner airline regardless of class of service or passengers are entitled to choose not to travel and take a full refund. In both cases, compensation for inconvenience is also available.

For international itineraries, including trans-border, the airline is liable for damages that include reasonable expenses such as meals, accommodation, lost wages, missed events at destination and any other additional loss incurred as a result.

A more detailed list of passenger rights can be found on Lukacs’ website.

ACTA told Travel Market Report Canada Wednesday afternoon that it will continue to monitor and evaluate the situation, remaining hopeful for a settlement. A formal comment is expected to be issued in the coming days.

So how does travel insurance factor into all of this? The Travel Health Insurance Association of Canada (THIA) has some advice for travellers:

Start with the airline: Impacted customers should first contact Air Canada for information on refunds or flight rescheduling. 

Check your travel insurance: If your travel insurance policy covers trip cancellation, interruption, delay or missed connection (and a strike is listed as a covered reason) you may be reimbursed for prepaid travel costs that Air Canada or other providers won’t refund.  

Check the “Known Event” date: Many travel insurance providers may indicate when the threat of the strike became a known event. Policies purchased prior to this date may include coverage, but those purchased after may not.  

“Typically, most travel insurance plans do not cover labour dispute, or airline strikes unless the traveller has Cancel for any Reason (CFAR) coverage – and even then, reimbursement is not 100% of the trip cost,” explained Manulife’s AVP, Head of Travel Distribution, Jennifer Waver.

“While some misconnection and disruption benefits may apply, coverage is often limited. At Manulife, we go further. Our Premium Protection Plan is specifically designed to help protect travellers from any event that is unforeseen at the time the policy was purchased, including labour dispute and airline strikes. This plan includes both trip cancellation and trip interruption benefits, offering clients peace of mind and financial protection.”

Manulife says they always recommend reviewing the specific terms and conditions of your travel insurance policy to understand the full extent of coverage, especially when it comes to unexpected labour disputes and strikes.

With so much up in the air, (excuse the pun) here’s hoping a settlement is reached before August 16.

Useful links:

Canadian Transportation Agency’s Air Passenger Protection Regulations

Air Canada flight policies click here

Air Canada Vacation policies please click here

Air Passenger Rights click here

TICO – Travel Industry Council of Ontario please click here