Elements of Air Canada Flight Attendants’ Deal Emerge as Airline Resumes Operations

Air Canada started to resume full operations Tuesday, as details about the tentative deal reached by CUPE and Air Canada are emerging and the airline institutes an “Exceptional Policy” for reimbursement of travel expenses for passengers.

The Air Canada Component of CUPE was fighting for two major changes to the flight attendants’ 10 year old contract – which had been in negotiations for eight months; a wage increase and the addition of ground pay for duties performed while not in the air.

All indications are they got both. And more.

Travel Market Report Canada has learned that a proposed new four-year contract, which expires in March 2029, includes several improvements, specifically for Rouge flight attendants who have had a pay freeze in place. Those who are unilingual will now be able to move through ranks more easily.

Both Rouge and mainline now have prone rest ( time between flights ) of 8 hours and can cash out sick days when they retire. There have also been improvements to the pensions and crew with the A321 adding one more flight attendant. Those flight attendants on reserve – meaning on call – are having that call time shortened from 24 hours to 16 hours.

One of the biggest contentions – ground pay – is seeing a huge improvement; flight attendants will now receive 50% of pay 60 minutes before departure on narrow body aircraft, which grows up to 70% as of 2029. Little things, such as guaranteeing a window or aisle seat in Y class for flight attendants while deadheading, should go a long way in securing a YES vote for the proposed 4 year contract.

However, the proposed contract still needs to be ratified by union members. Some mainline flight attendants are expressing disappointment, suggesting that Rouge flight attendants are seeing far more upside in the new contract than they are. In the event of a NO vote, they will presumably head to arbitration, something which they were set on avoiding. It appears at press time there is growing anger from main line flight attendants, some saying they feel the have been sold out.

Air Canada’s Executive Vice-President, Mark Nasr, confirmed the addition of ground pay for flight attendants in an interview on CBC News Network, saying it “absolutely should be in there.”

“We’re so happy that we finally reached this industry-leading deal that allows our flight attendants to be compensated for the important that they perform on the ground,” Nasr said.

Air Canada began reinstating flights as of Tuesday (August 19) afternoon, with partial service focusing on international outbound routes. Domestic and North American service is expected to ramp up on Wednesday. Most of its fleet which consists of about 250 planes returned to domestic airports in advance of the strike.

By end of Tuesday, Air Canada was operating approximately 53% of its scheduled flights across Air Canada, Rouge, and Express partners. An extra 5,000 staff have been deployed to assist affected passengers, aiming to restore trust in the brand.

“We’re laser-focused on getting our customers moving again,” said Mark Nasr, Executive Vice President and Chief Operations Officer, at Air Canada. “Restoring global operations will take up to ten days, as aircraft and crew are out of position. Additionally, mandatory maintenance checks are required, as aircraft have been on the ground for more than three days. Regrettably, during this period some flights will be canceled until the schedule is stabilized, and we’ll notify customers well in advance and provide options.”

Nasr acknowledges that consumer confidence in the airline has been shaken, and says they are working hard to fully restore trust. It’s instituted a new “Exceptional Policy” which will cover transportation expenses customers may have incurred to get to their destination during this disruption.

The airline has created a dashboard on its website, allowing anyone to transparently track its progress as operations return to normal. Air Canada’s recovery dashboard is available now at www.aircanada.com/action. The airline’s exceptional disruption policy will be available beginning August 20, 2025 at www.aircanada.com/action.

Air Canada says currently only customers with confirmed bookings whose flights are shown as operating should go to the airport. They will offer options to those with cancelled flights, including obtaining a full refund or receiving a credit for future travel. The carrier will also offer to rebook customers on other airlines, although capacity is currently limited due to the peak summer travel season.

Air Canada will not comment on the agreement until the ratification process is complete. During any ratification or under the binding arbitration process, a strike or lockout is not possible, meaning advisors can book with Air Canada and not worry about future travel disruption.

The end to the strike came after intense mediation and despite prior government-imposed back-to-work orders that the CUPE initially defied.

The four-day strike was the first by the airline’s cabin crew in four decades.